8. Assume that you placed a $1,000 investment with a mutual fund that charged an 8.5% load....

Question:

8. Assume that you placed a $1,000 investment with a mutual fund that charged an 8.5% load. Management and other fees charged by the fund total 1.10% per annum. Ignoring other costs, over five years, what annual return would the fund have to produce to equal the value that your initial investment would have earned in a savings account paying 5% interest? (Assume annual compounding of income and no taxes.)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Investments

ISBN: 9788120321014

6th Edition

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

Question Posted: