You are considering purchasing a no-load mutual fund with an operating expense of .4% and a 12 b-1 expense of .25%. You are also considering purchasing a CD paying 3.0% per year. Wh minimum annual rate of return must the fund earn to make you better off in the fund versus the CD Group of answer choices 3.65 % 3.0% 2.35% 3.4%
You are considering purchasing a no-load mutual fund with an operating expense of .4% and a 12 b-1 expense of .25%. You are also considering purchasing a CD paying 3.0% per year. Wh minimum annual rate of return must the fund earn to make you better off in the fund versus the CD Group of answer choices 3.65 % 3.0% 2.35% 3.4%
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 2FPE
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![You are considering purchasing a no - load mutual fund with an operating expense of .4% and a 12 b-1 expense of .25% . You are also considering purchasing a CD paying 3.0% per year. What
minimum annual rate of return must the fund earn to make you better off in the fund versus the CD Group of answer choices 3.65 % 3.0 % 2.35% 3.4%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F586c4cb0-ab04-46e0-bba7-315f8ab672a1%2Fdf19bbd7-b8d8-4cb3-99de-b59cff5e7eb5%2F0mro2ihr_processed.png&w=3840&q=75)
Transcribed Image Text:You are considering purchasing a no - load mutual fund with an operating expense of .4% and a 12 b-1 expense of .25% . You are also considering purchasing a CD paying 3.0% per year. What
minimum annual rate of return must the fund earn to make you better off in the fund versus the CD Group of answer choices 3.65 % 3.0 % 2.35% 3.4%
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