Question: Michelle is choosing between two mutual funds. While both funds have the same risk level, Fund A has historical returns of 9.0 S. and Fund
Michelle is choosing between two mutual funds. While both funds have the same risk level, Fund A has historical returns of 9.0 S. and Fund B has historical returns of 7.5%. Fund A also has an expense ratio of 1.6% while Fund B has an expense ratio of 0,6%. Based on this information, which fund should Michelle choose and why? Fund A because its after-fee return is higher: 10.6%v,8.1% Fund A because its historical return is higher: 9.0% vs. 7.5%. Fund A because its after-fee return is higher: 7.4% vs. 6.9%. Fund A because its expense ratio is higher: 1.6%vs,0.6%
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