Question 3 (of 10) 10.00 points You are considering an investment in a mutual fund with a 4% load and an expense ratio of 1.1% You can invest instead in a bank CD paying 6% interest a. If you plan to invest for two years, what annual rate of return must the fund portfolio eam for you to be better off in the fund than in the CD? Assume annual compounding of retur decimal places.) Annual rate of retum b. If you plan to invest for six years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of retums decimal places.) Annual rate of retum c. Now suppose that instead of a front-end load the fund assesses a 12-1 fee of 1359 per year. What annual rate of return must the fund portfolio earn for you to be better off in the Round your answer to 2 decimal places.) Annual rate of retum References eBook & Resources Worksheet Learning Objective: 04105 Demonstrate the impact of expenses and turnover on nutual fund investment performance 9 Chapter 4 Home