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You are considering an investment in a mutual fund with a 4% load and an expense ratio of 0.55%. You can invest instead in a

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 t


Need a help with a, b, and c please. Thank you.

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Answer #1

8.74% =((1+6%)^2/(1-4%))^(1/2)+0.55%-1 7.27% =((1+6%)^6/(1-4%))^(1/6)+0.55%-1 c Annual rate of return 7.40% -6%+0.85%+0.55%

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