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

---

Definitions:

Deviant Communities

Groups that exhibit behaviors and norms which deviate from the mainstream or societal standards.

Uniform Crime Reports

An annual report compiled by the Federal Bureau of Investigation that summarizes the incidence and rate of reported crimes throughout the United States.

Crime Rate

Refers to the number of reported crimes within a given population and timeframe, often measured per 100,000 inhabitants.

Officially Stated Rates

These are interest rates or other financial charges that are publicly announced by official bodies, often used as benchmarks in financial markets or by banks.