Suppose You Consider Investing $5,000 in a Load Fund from Which

question 19

Multiple Choice

Suppose you consider investing $5,000 in a load fund from which a fee of 8% 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 1/2 percent redemption fee.Which is better and by how much?

• A) Load fund by $320.50
• B) Load fund by $575.50
• C) Funds are equal
• D) No load fund by $320.50
• E) No load fund by $575.50

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Definitions:

Operational Plans

Strategic blueprints that outline detailed actions and resources required to accomplish short-term objectives aligned with an organization's goals.

Time Management

The process of planning and controlling how much time to spend on specific activities, aiming to increase efficiency or productivity.

Operational Plan

A detailed plan outlining the tactics an organization will use to achieve the targets and objectives set in its strategic plan.

Standing Plans

Pre-established procedures and guidelines designed to be implemented repeatedly in situations that occur frequently within an organization.