You Are Considering Investing in a No-Load Mutual Fund That

question 18

Multiple Choice

You are considering investing in a no-load mutual fund that focuses on growth stocks or in an index fund.The growth stocks had an annual return of 15 percent and expenses of 2 percent.The index fund had an annual return of 12 percent and expenses of 1 percent.Assuming equal risk,you should buy

• A)the index fund.
• B)the growth fund.
• C)some of both.
• D)neither; the expenses are too high.

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Definitions:

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A condition visibly indicated by insufficient intake or absorption of nutrients necessary for health.

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The failure or refusal of a caregiver or other responsible person to provide for an elder’s basic physical, emotional, or social needs, or failure to protect the elder from harm.