You Are Considering Investing in a No Load Mutual Fund

question 35

Multiple Choice

You are considering investing in a no load mutual fund with an annual expense ratio of 0.6% and an annual 12b-1 fee of 0.75%.You could also invest in a bank CD paying 6.5% per year.What minimum annual rate of return must the fund earn to make you better off in the fund than in the CD?

• A) 7.10%
• B) 7.45%
• C) 7.25%
• D) 7.85%

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RCRA

The Resource Conservation and Recovery Act, a United States federal law that regulates the disposal of solid and hazardous waste.

Hazardous Waste

Waste materials that are dangerous or potentially harmful to human health or the environment.

Manifest System

A procedure used in shipping and transportation industries to document and declare the contents and details of cargo.

Toxicity

The degree to which a substance can cause harm to an organism or a living cell.