Dawn has $10,000 to invest. She is considering OPQ Mutual Fund and RST Exchange-Traded Fund, both of which have been around since the early 2000s. OPQ's most recent five-year returns have been 8%, -4%, 2%, 12%, and -1%, while RST has returned 10%, -18%, 26%, 13%, and -9% in the same time frame. Taking into account a risk-free rate of 2.3%, how much better is one over the other (round to the nearest hundredth)?
Dawn has $10,000 to invest. She is considering OPQ Mutual Fund and RST Exchange-Traded Fund, both of which have been around since the early 2000s. OPQ's most recent five-year returns have been 8%, -4%, 2%, 12%, and -1%, while RST has returned 10%, -18%, 26%, 13%, and -9% in the same time frame. Taking into account a risk-free rate of 2.3%, how much better is one over the other (round to the nearest hundredth)?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Dawn has $10,000 to invest. She is considering OPQ Mutual Fund and RST Exchange-Traded Fund, both of which have been around since the early 2000s.
OPQ's most recent five-year returns have been 8%, -4%, 2%, 12%, and -1%, while RST has returned 10%, -18%, 26%, 13%, and -9% in the same time frame. Taking into account a risk-free rate of 2.3%, how much better is one over the other (round to the nearest hundredth)?
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