Question
***dont use excel to solve*** PIMCO Equity Fund has a 3% load. Annual fees are 0.35%, and the expected average annual return for the next
***dont use excel to solve***
PIMCO Equity Fund has a 3% load. Annual fees are 0.35%, and the expected average annual return for the next 7 years is 11% annually. Vanguard Equity Fund is a no-load fund. Its expected average return for the next 7 years is 10% with annual fees of 1.1%.
- If you hold both investments for 2 years, which one is the better investment?
- You believe PIMCO is a better long-term investment. How long must you hold the PIMCO Fund to achieve higher average annual returns than an investment in Vanguard?
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
