Go to www.cnbc.com and find a loaded mutual fund. No two people may use the same mutual fund, so your fund must be approved TODAY by Mr. Howard! Write down the mutual fund company, the fund name, the ticker symbol and the front-end load. Also write down the 1-year annual return. Using the 1-year annual return, the front-end load and the current price, show how to compute the 1-year annual loaded return.  This activity is due at the end of class Monday. This is an individual activity.

Investment Activity

You have $10,000 which you are going to invest in stocks and mutual funds. The ground rules are:

• you must buy at least one stock, one loaded mutual fund and one no-load mutual fund, but you may have as many as you choose, provided you invest the fund’s minimum amount

• for every stock you choose, there will be a $40 commission charged when you buy the stock and when you sell the stock (we will “sell” everything the last of May – date to be determined) Note: this commission IS part of your $10,000.  

Investment Project

By the beginning of class on Monday, you will need to turn in:

• The name and ticker symbol for all the stocks and mutual funds you have decided to buy. Your loaded fund must have with it load information.

• How many shares of each stock you want to buy and how much money for each fund you want to invest (minimum dollar amounts may apply). Any “left over” money will be invested in a Money Market Savings account earning 3.0%

Investment Project

On Tuesday your broker (Mr. Howard), will purchase your shares using the actual market prices for the day. Failure to follow all instructions will result in you having to re-submit your information and a 10% penalty in your Project grade. Upon the sale of your stock and funds (using the actual selling price for the day of the sale), you will then compute your total return and annual return with and without commissions and loads for your total investment

and your individual stocks and funds.

Investment Project