Suppose You Consider Investing $10,000 in a Load Fund from Which

question 25

Multiple Choice

Suppose you consider investing $10,000 in a load fund from which a fee of 3% is deducted and you expect the fund to earn 12% over the next year.Alternatively,you could invest in a no load fund which is expected to earn 10% and which takes a 0 percent redemption fee.Which is better and by how much?

• A) Load fund by $151
• B) No load fund by $136
• C) Funds are equal
• D) No load fund by $421
• E) Load fund by $115