You are going to invest in a stock mutual fund with a front-end load of 5 percent and an expense ratio of 1.43 percent. You also can invest in a money market mutual fund with a return of 2.4 percent and an expense ratio of 0.30 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 11 years?

Question

Jaxson

28 July, 04:48

+3

Answers (1)

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Zayden Woodward · Answer 1

Return for the year - 17.31%

Explanation:

($37.81 - 33.16 + 0.45 + 0.64) / $33.16 = 17.31%