You Are Considering Investing $1,000 in a Load Fund Which

question 104

Multiple Choice

You are considering investing $1,000 in a load fund which charges a fee of 2.5%,with an expected return of 12% over the next year.Alternatively,you could invest in a no-load fund with similar risk that is expected to earn 8% and charges a 1/2 percent redemption fee.Which is better and by how much?

• A) Load fund by $12.00
• B) Load fund by $15.32
• C) Load fund by $17.40
• D) No-load fund by $6.55
• E) No-load fund by $1.30

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