Use no-load or load funds and closed-end or open-end funds

Assignment Help Financial Management
Reference no: EM131575668

You are 25 years old and looking at starting an investment fund using mutual funds as the vehicle to invest your money. Tell me what type of funds (three different funds would seem right to begin) you will invest your money for your financial future (percentage in each).

1) You should not only talk about the fund types in which you would invest but also whether you would use no-load or load funds and closed-end or open-end funds.

2) Please, explain your reasoning for your investments.  

Reference no: EM131575668

Questions Cloud

What is project payback period : An investment project provides cash inflows of $690 per year for eight years. What is the project payback period if the initial cost is $5,700?
Compute the return firm should earn given its level of risk : Compute the return the firm should earn given its level of risk and determine whether the manager is saying the firm is undervalued or overvalued.
Allowed companies to continue to operate irresponsibly : The government provided bailout allowed companies to continue to operate irresponsibly.
Define the default risk premium : What is the default risk premium on the corporate bond? what does the market believe that 2-year securities will be yielding 4 years from now?
Use no-load or load funds and closed-end or open-end funds : You should not only talk about the fund types in which you would invest but also whether you would use no-load or load funds and closed-end or open-end funds.
Weighted average cost of capital at its current debt level : What is PB’s weighted average cost of capital at its current debt level of $100 million?
Consider project that requires initial investment : Consider a project that requires an initial investment of $105,000. What is the highest 6-year interest rate such that this project is still? profitable?
Compute the ear for each investment choice : Compute the EAR for each investment choice.
Firm long-term investment decisions : What role does the cost of capital play in the firm's long-term investment decisions?

Reviews

Write a Review

Financial Management Questions & Answers

  End of seven years in order to deplete the account

A person deposits $10400 in an account which earns 7% compounded quarterly. At the end of 2 years the person withdraws $2600, and at the end of 5 years they withdraw $3640. How much can be withdrawn at the end of 7 years in order to deplete the accou..

  What is the firms breakeven point in units

Cranberry Wood Products Inc. spends an average of $9.30 in labor and $12.60 in materials on every unit it sells. Sales commissions and shipping amount to another $3.10. All other costs are fixed and add up to $141,000 per month. What is Cranberry's c..

  Define diversification

Define diversification and explain how it is used to reduce risk.

  Monetary solutions for the present financial crisis

Review the materials in Chapter 14 of the textbook Money and Banking by Robert E Wright and Vincenzo Quadrini April 2009. Answer these questions: Suggest monetary solutions for the present financial crisis. Discuss if the solutions are always applica..

  Compute earings per share for the year

Frantic Fast Foods had earnings after taxes of $420,000 in 2012 with 309,000 shares outstanding. On January 1, 2013, the firm issued 20,000 new shares. Because of the proceeds from these new shares and other operating improvements, earings after taxe..

  Risk-free asset and the optimal tangent portfolio

John would like to construct his complete investment portfolio by allocating funds between the risk-free asset and the optimal tangent portfolio.

  Contrast how different types of financial instruments

Compare and contrast how different types of financial instruments, such as stocks, bonds, mutual funds, and commodities,

  What is the NPV of the project

You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly. The company bought some land three years ago for $1.49 million in anticipation of using it as a..

  How much will accumulate into the savings fund by the time

how much will accumulate into the savings fund by the time the last deposit is made?

  Drawbacks of the top-down analysis approach

What are the benefits and drawbacks of the top-down analysis approach? What are the benefits and drawbacks of the bottom-up analysis approach? Give an example of when it would be best to use each of these approaches. Explain why you would choose one ..

  What is vandells pre-acquisition levered cost of equity

What is Vandell’s pre-acquisition levered cost of equity? What is its unlevered cost of equity? What is the value of the tax shields at t = 0?

  What was dollar return on this investment

You purchased 300 shares of a particular stock at the beginning of the year at a price of $76.63. The stock paid a dividend of $1.60 per share, and the stock price at the end of the year was $83.14. What was your dollar return on this investment?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd