Question: Ch 4 Assignment i Submitted 94.12/100 Total points awarded Help Exit 15 0/5.88 points awarded Scored eBook You are considering an Investment in a

Ch 4 Assignment i Submitted 94.12/100 Total points awarded Help Exit 15

Ch 4 Assignment i Submitted 94.12/100 Total points awarded Help Exit 15 0/5.88 points awarded Scored eBook You are considering an Investment in a mutual fund with a 3% load and an expense ratio of 0.5%. You can Invest Instead in a bank CD paying 2% Interest. Required: a. If you plan to invest for 6 years, what annual rate of return must the fund portfollo earn for you to be better off In the fund than in the CD? Assume annual compounding of returns. b. What annual rate of return must the fund portfolio earn If you plan to Invest for 10 years to be better off in the fund than in the CD? c. Now suppose that Instead of a front-end load the fund assesses a 12b-1 fee of 0.75% per year. What annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Note: Do not round Intermediate calculations. Round your answers to 2 decimal places. Print a. Annual rate of return References b. Annual rate of return 88.98 % X 2.06 % c. Annual rate of return 2.75 (X) 96 Me Graw HI Prev

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