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The Figure Given Below Shows the Demand Curves [D1 and D2]

Question 21

Multiple Choice

The figure given below shows the demand curves [D1 and D2] and the supply curve [S1] of capital.Figure 17.1
The figure given below shows the demand curves [D<sub>1</sub> and D<sub>2</sub>] and the supply curve [S<sub>1</sub>] of capital.Figure 17.1    -​If you invest $2,500 in a mutual fund with a 5 percent front-end load, _____. A) ​$50 will be used to pay for the sales charge and $2,000 will be invested in the fund B) ​there will be no sales charge and the entire $2,500 will be invested in the fund C) ​the fees for the fund manager will be paid only after a period of 20 years D) ​​$125 will be paid to the fund manager and $2,375 will be invested in the fund E) a fixed amount of $250 will be paid to the fund manager every year
-​If you invest $2,500 in a mutual fund with a 5 percent front-end load, _____.


A) ​$50 will be used to pay for the sales charge and $2,000 will be invested in the fund
B) ​there will be no sales charge and the entire $2,500 will be invested in the fund
C) ​the fees for the fund manager will be paid only after a period of 20 years
D) ​​$125 will be paid to the fund manager and $2,375 will be invested in the fund
E) a fixed amount of $250 will be paid to the fund manager every year

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