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Business, 12.12.2019 04:31 musicfrk2207

You are considering an investment in a mutual fund with a 6% load and expense ratio of 0.1%. 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
annual rate of %
b. if you plan to invest for six 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 %
c. now suppose that instead of a front-end load the fund assesses a 12b-1 fee of 1.30% 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?
annual rate of return %.

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