Question

As an investment advisor, you tell a client that an investment in a mutual fund has (over the next year) a higher expected return than an investment in the money market. The client then asks the following questions:
a. Does that imply that the mutual fund will certainly yield a higher return than the money market?
b. Does it follow that I should invest in the mutual fund rather than in the money market? How would you reply?


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  • CreatedJuly 07, 2015
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