Lets see how fees can hurt your investment strategy. Lets assume that your mutual fund grows at
Question:
Let’s see how fees can hurt your investment strategy. Let’s assume that your mutual fund grows at an average rate of 7% per year—before subtracting the fees. Using the rule of 70:
a. How many years will it take for your money to double if fees are 0.5% per year?
b. How many years will it take for your money to double if fees are 1.5% per year (not uncommon in the mutual fund industry)?
c. How many years to double if fees are 2.5% per year?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (12 reviews)
a Since your ...View the full answer
Answered By
Brian Otieno
I'm Brian , an experienced professional freelancer with countless hours of success in freelancing many subjects in different disciplines. Specifically, I have handled many subjects and excelled in many disciplines. I have worked on many Computer Science projects and have been able to achieve a lot in that field. Additionally, I have handled other disciplines like History, Humanities, Social Sciences, Political science, Health care and life science, and Religion / Theology. My experience generally in these subjects has made me able to deliver high-quality projects in a very timely fashion. I am very reliable at my job and will get the work done in time, no matter what. In Addition, I have managed to ensure that the work meets my client's expectations and does not cause an error. I am a hard-working and diligent person who is highly responsible for everything I do. Generally, Freelancing has made me more accountable for doing my job. Additionally, I have had a passion for writing for the last seven years in this field.
0.00
0 Reviews
10+ Question Solved
Related Book For
Modern Principles Of Microeconomics
ISBN: 9781429278416
3rd Edition
Authors: Tyler Cowen, , Alex Tabarrok
Question Posted:
Students also viewed these Business questions
-
How many years will it take for $490 to grow to $1,026.32 if it's invested at 6 percent compounded annually?
-
How many days will it take for $2075 to earn $124.29 interest at 8.25% p.a.?
-
How many years will it take for a uniform annual deposit of size A to accumulate to 10 times the size of a single deposit at a rate of return of 10% per year?
-
Why does the following code fragment not have the same effect as the code fragment in the previous question? x.next t.next = t; = x.next;
-
The annual earnings (in dollars) of 40 randomly selected registered nurses Use the data set to (a) Find the sample mean, (b) Find the sample standard deviation, (c) Construct a 98% confidence...
-
Royal Corporation is preparing its balanced scorecard for the past quarter. The balanced scorecard contains four perspectives: financial, customer, internal business process, and learning and growth....
-
You have the opportunity to invest in a machine that will cost \($340,000.\) The machine will generate cash flows of \($100,000\) at the end of each year and require maintenance costs of \($10,000\)...
-
Zebra Imaginarium, a retail business, had the following cash receipts during December 20--. The sales tax is 6%. Dec. 1 Received payment on account from Michael Anderson, $1,360. 2 Received payment...
-
The following are the trial financial statements for both companies for the fiscal year ended June 30, 2018: Income Statements: Par Inc. Sub Inc. Sales $800,000 $300,000 Dividends income $4250 Cost...
-
Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, Sandy worked as a computer technician at a local university, earning a salary of $152,000,...
-
a. If you talk to a broker selling the high-fee mutual fund, what will he or she probably tell you when you ask them, Am I getting my moneys worth when I pay your high fees? b. According to Figure...
-
In the United States, high-level corporate officials have to publicly state when they buy or sell a large number of shares in their own company. They have to make these statements a few days after...
-
The objective . . . is not to develop one single approach to measuring and reporting eco-efficiency. Rather it is to establish a general, voluntary framework that is flexible enough to be widely...
-
where does customer advances record on balance sheet as asset or liabilities?
-
Assume that Investment in Associates account has a debit beginning balance of $ 5 , 0 0 0 , and the only movement in this account is the share of profit or loss of associates for the year. The Share...
-
Public speaking is different from a conversation. Write a response that defines and distinguishes these two types of communication, addressing a topic from your personal life or current events....
-
The population of Cary in 1980 was 21763. In 1987, the population had grown to 39387. Using the uninhibited growth model, predict the population of Cary for the year 2005.
-
Enron has an ideal code of conduct that spread over 6 5 pages, but Enron still had one of the biggest accounting scandals. What went wrong? No plagiarism please.
-
Look in the historical archives of the SEC's EDGAR online database of financial statements and locate the 2004 financial statements for The Walt Disney Company. In Note 4 to the financial statements,...
-
Accounting policies and practices that are most important to the portrayal of the companys financial condition and results, and require managements most difficult, subjective, or complex judgments...
-
A $1 per unit tax levied on consumers of a good is equivalent to which of the following? a. A $1 per unit tax levied on producers of the good b. A $1 per unit subsidy paid to producers of the good c....
-
In a market with a binding price ceiling, an increase in the ceiling will __ the quantity supplied, __ the quantity demanded, and reduce the __ . a. Increase, decrease, surplus b. Decrease, increase,...
-
When the government imposes a binding price floor, it causes which of the following to occur? a. The supply curve to shift to the left b. The demand curve to shift to the right c. A shortage of the...
-
Value is usually created when _ _ _ _ _ _ _ _ . the end user enjoys direct pleasure and satisfaction from a company s product a company survives but has no real competitive advantage over rivals a...
-
In exponential smoothing, an alpha of . 3 0 will cause a forecast to react more quickly to a large error than will an alpha of . 2 0 Question 1 3 options: True False
-
Elm Grove Enterprises uses a periodic inventory system. It entered into the following purchases and sales transactions for July. Date Activities Units Acquired at Cost Units Sold at Retail Jul. 1...
Study smarter with the SolutionInn App