BUS 160- You are going to invest in a stock mutual fund with

BUS 160- You are going to invest in a stock mutual fund with a 6 percent

Subject: Business    / Finance
Question

You are going to invest in a stock mutual fund with a 6 percent front-end load and a 1.75 percent expense ratio. You also can invest in a money market mutual fund with a 3.30 percent return and an expense ratio of .10 percent.

If you plan to keep your investment for two 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 10 years?