25 expenses are deducted at the end of the year a how

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during the year, and the fund’s exercise ratio was 1.25% (expenses are deducted at the end of the year). A) how much did you invest at the start of the year (i.e. the offering price)? B) what was the NAV at the end of the year? a) Offering price of fund=NAV*(1+load) $20*(1+5.75%) =21.15 b)NAV 1 =NAV 0 (1- load)*(1+return)*(1-expenses,including 12b1 fees) NAV 1 =21.15(1-5.75%)(1+13%)(1- 1.25%)=21.034 Ture or false for money market mutual fund: F -A 20-year treasury bond, T -A 3-month Treasury bill, T -A 9-month bank certificate of deposit What is the equivalent taxable yield for a municipal bond yielding 2.1% with the investor’s marginal combined tax rate of 30%? 0.021/ (1-0.3)=0.03=3% Ture or false about mutual fund investor: F -is sheltered from personal taxation as all taxes are paid at the fund level, T -has full responsibility for a proportionate share of income and capital gains generated by the fund, F -in a closed end fund may sell shares back to the fund for cash, F -can decide when to realize capital gains for tax purposes, T -may sell shares before income and capital gains are declared and not have to pay taxes on them Compute the percentage change in price-weighted index of the three stocks from time 1 to time 2. At t=1, (12+50+70)/3=44 at t=2, (14+57+73)/3=48 48/44-1=0.09=9%
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  • Spring '13
  • open-end mutual funds

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