Question
You are going to invest in a stock mutual fund with a front-end load of 3.5 percent and an expense ratio of 1.51 percent. You
You are going to invest in a stock mutual fund with a front-end load of 3.5 percent and an expense ratio of 1.51 percent. You also can invest in a money market mutual fund with a return of 2.3 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 10 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Annual Return
2 years = _____%
10 years = _____%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started