You are going to invest in a stock mutual fund with a front-end load of 5.5 percent
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You are going to invest in a stock mutual fund with a front-end load of 5.5 percent and an expense ratio of 1.59 percent. You also can invest in a money market mutual fund with a return of 2.7 percent and an expense ratio of 0.20 percent. If you plan to keep your investment for 2 years, what annual return must the stock mutual fund earn to exceed an investment in the money market fund? What if your investment horizon is 8 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Annual Return
2 years%
8 years%
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ISBN: 9780073301150
3rd Edition
Authors: Matthew Sadiku, Charles Alexander
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