Dawn has $10,000 to invest. She is considering OPQ Mutual Fund and RST Exchange-Traded Fund, both of which have been around since the early 2000s. OPQ's most recent five-year returns have been 8%, -4%, 2%, 12%, and -1%, while RST has returned 10%, -18%, 26%, 13%, and -9% in the same time frame. Taking into account a risk-free rate of 2.3%, how much better is one over the other (round to the nearest hundredth)?
Dawn has $10,000 to invest. She is considering OPQ Mutual Fund and RST Exchange-Traded Fund, both of which have been around since the early 2000s. OPQ's most recent five-year returns have been 8%, -4%, 2%, 12%, and -1%, while RST has returned 10%, -18%, 26%, 13%, and -9% in the same time frame. Taking into account a risk-free rate of 2.3%, how much better is one over the other (round to the nearest hundredth)?
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter2: Descriptive Statistics
Section: Chapter Questions
Problem 17P: Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual...
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Dawn has $10,000 to invest. She is considering OPQ Mutual Fund and RST Exchange-Traded Fund, both of which have been around since the early 2000s.
OPQ's most recent five-year returns have been 8%, -4%, 2%, 12%, and -1%, while RST has returned 10%, -18%, 26%, 13%, and -9% in the same time frame. Taking into account a risk-free rate of 2.3%, how much better is one over the other (round to the nearest hundredth)?
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