10. You are going to invest in a stock mutual fund with a front-end load of 5.5 percent and an expense ratio of 1.59 percent. You also can invest in a money market mutual fund with a return of 2.7 percent and an expense ratio of 0.20 percent. If you plan to keep your investment for 2 years, what annual return must the stock mutual fund earn to exceed an investment in the money market fund? What if your investment horizon is 8 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

9.

The Bruin Stock Fund sells Class A shares that have a front-end load of 5.2 percent, a 12b-1 fee of 0.34 percent, and other fees of 1.06 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.55 percent, and other fees of 1.06 percent. Assume the portfolio return is 9 percent per year.

a. What is the value of $1 invested in each share class if your investment horizon is 3 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. What if your investment horizon is 20 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)