5-59 An investor invests $100,000 in a mutual fund that has a 5 percent front-end load,charges a management fee of 0.5 percent,and a 12b-1 fee of 0.25 percent.The investor plans to leave the investment for one year.What is the dollar amount of the total shareholder cost?

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Quizplus · Accepted Answer

The front-end load is 5% of $100,000, which is $5,000. The management fee is 0.5% of $100,000, which is $500. The 12b-1 fee is 0.25% of $100,000, which is $250. Adding these costs together: $5,000 + $500 + $250 = $5,750.

5-59 an Investor Invests $100,000 in a Mutual Fund That