You are considering an investment in a mutual fund with a 6% pre load and an...

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You are considering an investment in a mutual fund with a 6% preload and an expense ratio of .5%. Alternatively, you could investin a bank CD paying 7%. If you plan to invest for 4 years, whatannual rate of return must the mutual fund portfolio earn for youto be better off in the fund than in the CD? Assume annualcompounding of returns.

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You are considering an investment in a mutual fund with a 6% preload and an expense ratio of .5%. Alternatively, you could investin a bank CD paying 7%. If you plan to invest for 4 years, whatannual rate of return must the mutual fund portfolio earn for youto be better off in the fund than in the CD? Assume annualcompounding of returns.

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