You expect a tax-free municipal bond portfolio to provide a rate of return of 4%. Management

fees of the fund are .6%. What fraction of portfolio income is given up to fees?

If the management fees for an equity fund also are .6%, but you expect a portfolio return

of 12%, what fraction of portfolio income is given up to fees? Why might management

fees be a bigger factor in your investment decision for bond funds than for stock funds?

Can your conclusion help explain why unmanaged unit investment trusts tend to focus

on the fixed-income market?