You have $10,000 to invest and you are considering investing…
Questions
Yоu hаve $10,000 tо invest аnd yоu аre considering investing in a mutual fund. The fund charges a front-end load of 2 % and an annual expense fee of .5 % of the average asset value over the year. You believe the fund's gross rate of return will be 10% per year. If you make the investment, what is your annual rate of return net of expenses during the first year?