Question

You are going to invest in a stock mutual fund with a front-end load of 5 percent and an expense ratio of 1.43 percent. You also can invest in a money market mutual fund with a return of 2.4 percent and an expense ratio of 0.30 percent. If you plan to keep your investment for 2 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 11 years?

Answer 1

Return for the year- 17.31%

Step-by-step explanation:

($37.81 - 33.16 + 0.45 + 0.64) / $33.16 = 17.31%