Question: As you read the business news you come across an

As you read the business news, you come across an advertisement for a bond mutual fund – a fund that pools the investments from a large number of people and then purchases bonds, giving the individuals “shares” in the fund. The company claims their fund has had a return of 13½ percent over the last year. But you remember that interest rates have been pretty low – 5 percent at most. A quick check of the numbers in the business section you’re holding tells you that your recollection is correct. Explain the logic behind the mutual fund’s claim in the advertisement.




Sale on SolutionInn
Sales0
Views193
Comments
  • CreatedOctober 02, 2014
  • Files Included
Post your question
5000