Question: The average annual return ( over a 5 - year period ) of three mutual funds is shown in the table: Mutual Fund Average Annual

The average annual return (over a
5
-year period) of three mutual funds is shown in the table:
Mutual Fund Average Annual Return
Small Cap Growth Fund
2.56
%
Large Cap Value Fund
4.79
%
International Fund
8.73
%
Source: Vanguard
Suppose you have
$
8000
to invest in these three funds. You will invest
$
1000
more in the Small Cap Growth fund than you will in the Large Cap Value fund. Assuming the accounts will continue to earn the annual rates shown, how much should you invest for a year in each fund if you want your average return to be
(a)
4
%
?(b)
4.5
%
?(c)
5
%
?

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