In: Finance
You are going to invest in a stock mutual fund with a front-end load of 6.5 percent and an expense ratio of 1.37 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: