Question
You are considering an investment in a mutual fund with a 6% load and expense ratio of 0.25%. You can invest instead in a bank
You are considering an investment in a mutual fund with a 6% load and expense ratio of 0.25%. You can invest instead in a bank CD paying 1% interest.
a. If you plan to invest for 5 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 returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. What annual rate of return must the fund portfolio earn if you plan to invest for 7 years to be better off in the fund than in the CD? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. Now suppose that instead of a front-end load the fund assesses a 12b-1 fee of 1.00% per year. What annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Bitcoin Complete Guide To Bitcoin Understand Everything From Getting Started With Bitcoin Sending And Receiving Bitcoin To Mining Bitcoin
Authors: Mr Mark Gates
1st Edition
1974565491, 978-1974565498
