Question: Help Save & Exit Check my You are considering an investment in a mutual fund with a 4% load and an expense ratio of 0.65%.

Help Save & Exit Check my You are considering an investment in a mutual fund with a 4% load and an expense ratio of 0.65%. You can invest instead in a bank CD paying 6% interest. a. If you plan to invest for two years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual rate of return 00:13:11 b. If you plan to invest for six years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual rate of retur c. Now suppose that instead of a front-end load the fund assesses a 12b-1 fee of 0.90% 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? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Prey 13 of 15 !!! Next > Help Save & Exit Check my You are considering an investment in a mutual fund with a 4% load and an expense ratio of 0.65%. You can invest instead in a bank CD paying 6% interest. a. If you plan to invest for two years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual rate of return 00:13:11 b. If you plan to invest for six years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual rate of retur c. Now suppose that instead of a front-end load the fund assesses a 12b-1 fee of 0.90% 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? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Prey 13 of 15 !!! Next >

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