Suppose You Consider Investing $1,000 in a Load Fund Which

question 44

Multiple Choice

Suppose you consider investing $1,000 in a load fund which charges a fee of 2%, and you expect the fund to earn 11% over the next year. Alternatively, you could invest in a no-load fund with similar risk that is expected to earn 7% and charges a 1/2% redemption fee. Which is better and by how much?

• A) Funds are equal
• B) No-load fund by $36.98
• C) Load fund by $45.25
• D) Load fund by $23.15
• E) No-load fund by $15.52

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Definitions:

Time Management

Utilizing time in an effective manner to accomplish the desired results.

Personal Stress

Emotionally charged response to challenging or demanding circumstances, unique to individuals.

Work Overload

A situation where an individual or group has more work than they can manage in a given time frame.

Work Ethic

A set of values of hard work held by employees.