8. Assume that you placed a $1,000 investment with a mutual fund that charged an 8.5% load....
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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.)
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Investments
ISBN: 9788120321014
6th Edition
Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey
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