Question

In: Finance

You are considering an investment in a mutual fund eith a 3% load amd an expense...

You are considering an investment in a mutual fund eith a 3% load amd an expense ratio of 1.2%. You can invest instead in a nank CD paying 5% interest.
A) If you plan to onvest for two years what annual rate of return must the fund portfolioearn for you to be better off in the fund than in the CD? Assume annual compounding of returns.
B) if you plan to invest for 6 years, what annual rate of return must the fund portfolio earn fir you to be better off in the fund than in the CD? Assume annual compounding of returns.

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

You are considering an investment in a mutual fund with a 3% load and an expense...
You are considering an investment in a mutual fund with a 3% load and an expense ratio of 0.6%. You can invest instead in a bank CD paying 5% interest. a. If you plan to invest for two years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual...
You are considering an investment in a mutual fund with a 3% load and an expense...
You are considering an investment in a mutual fund with a 3% load and an expense ratio of 1.2%. You can invest instead in a bank CD paying 5% interest. c. Now suppose that instead of a front-end load the fund assesses a 12b-1 fee of 1.45% per year. What annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? (Do not round intermediate calculations. Round your answer...
You are considering an investment in a mutual fund with a 3% load and expense ratio...
You are considering an investment in a mutual fund with a 3% load and expense ratio of 0.75%. You can invest instead in a bank CD paying 2% interest. a. If you plan to invest for 5 years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns Annual rate of return = b. What annual rate of return must the fund...
You are considering an investment in a mutual fund with a 5% load and an expense...
You are considering an investment in a mutual fund with a 5% load and an expense ratio of 1%. You can invest in a bank CD paying 5% interest. a. If you plan to invest for 6 years , what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Does load fee reduce your effective investment amount? Why? b. If you plan to invest for two years...
You are considering an investment in a mutual fund with a 5% load and an expense...
You are considering an investment in a mutual fund with a 5% load and an expense ratio of 1.25%. You can invest instead in a bank CD paying 7% interest. a. If you plan to invest for two years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b....
You are considering an investment in a mutual fund with a 5% load and an expense...
You are considering an investment in a mutual fund with a 5% load and an expense ratio of 0.7%. You can invest instead in a bank CD paying 7% interest. a. If you plan to invest for two years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual...
You are considering an investment in a mutual fund with a 4% load and an expense...
You are considering an investment in a mutual fund with a 4% load and an expense ratio of 0.5%. You can invest instead in a bank CD paying 6% interest. a. If you plan to invest for two years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 8.69...
You are considering an investment in a mutual fund with a 7% load and an expense...
You are considering an investment in a mutual fund with a 7% load and an expense ratio of 0.5%. You can invest instead in a bank CD paying 3% interest. a. If you plan to invest for 5 years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b....
You are considering an investment in a mutual fund with a 1.9% load and expense ratio...
You are considering an investment in a mutual fund with a 1.9% load and expense ratio of .5%. You can invest instead in a bank CD paying 6% interest. If you plan to invest for 5 years, what annual gross rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. Round your answer to 4 decimal places. For example, if your answer is 3.205%,...
You are considering an investment in a mutual fund with a 5%load and expense ratio...
You are considering an investment in a mutual fund with a 5% load and expense ratio of 0.5%. You can invest instead in a bank CD paying 3% interest.a. If you plan to invest for 4 years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.)b. What annual rate...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT