Earn to exceed an investment in money market fund

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Reference no: EM131569505

You are going to invest in a stock mutual fund with a 4 percent front-end load and a 1.52 percent expense ratio. You also can invest in a money market mutual fund with a 2.4 percent return and an expense ratio of .10 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 9 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

  2 years %

  9 years %

Reference no: EM131569505

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