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

question 2

Multiple Choice

You are considering investing in a no-load mutual fund that focuses on growth stocks or in an index fund.The growth stock fund had an annual return of 15% and expenses of 2%.The index fund had an annual return of 12% and expenses of 1%.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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