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

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Definitions:

Fifteenth Amendment

An amendment to the U.S. Constitution ratified in 1870, prohibiting the federal and state governments from denying citizens the right to vote based on "race, color, or previous condition of servitude."

Voting Based on Sex

The practice of allowing individuals to vote or not based on their gender, historically favoring men over women until suffrage movements achieved gender equality in voting.

Composite Nation

A concept envisioning a nation built from a diverse mix of peoples, cultures, and races, often associated with the United States.