Suppose you have 2 mutual funds whose annual returns are shown in the following table. Assume you
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Question:
Suppose you have 2 mutual funds whose annual returns are shown in the following
table. Assume you invest $100 in each, and the proceeds from year 1 are reinvested
in year 2 and so on.
1. How much money do you accumulate in each fund after 5 years?
2. For each fund, calculate the holding period return.
Year
Year | Fund A | Fund B |
1 | .16 | .30 |
2 | .10 | -.10 |
3 | .14 | .28 |
4 | .02 | .17 |
5 | .04 | -.02 |
Related Book For
Fundamentals of Investments
ISBN: 978-0132926171
3rd edition
Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey
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