Question 3 A good stock-based mutual fund should earn at least 10% per year over a long period of time. Consider the case of Qies and Moneeb, who were overheard gloating (for all to hear) about how will they had done with their mutual fund investment. "We turned a 25,000S investment of money in 1982 into 100,000S in 2007". - What return (interest rate) did they really earn on their investment?

Question 3 A good stock-based mutual fund should earn at least 10% per year over a long period of time. Consider the case of Qies and Moneeb, who were overheard gloating (for all to hear) about how will they had done with their mutual fund investment. "We turned a 25,000S investment of money in 1982 into 100,000S in 2007". - What return (interest rate) did they really earn on their investment?

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 7FPE

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Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table: Which of the two mutual funds performed better over this time period?
A good stock-based mutual fund should earn at least 10% per year over a long period of time. Consider the case of Barney and Lynn, who were overheard gloating (for all to hear) about how well they had done with their mutual fund investment. “We turned a $25,000 investment of money in 1982 into $100,000 in 2007.” Solve, a. What return (interest rate) did they really earn on their investment? Should they have been bragging about how investment-savvy they were? b. Instead, if $1,000 had been invested each year for 25 years to accumulate $100,000, what return did Barney and Lynn earn?
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A good stock-based mutual fund should earn at least 10% per year over a long period of time. Consider the case of Barney and Lynn, who were overheard gloating (for all to hear) about how well they had done with their mutual fund investment. “We turned a $25,000 investment of money in 1982 into $100,000 in 2007.” Solve, a. What return (interest rate) did they really earn on their investment? Should they have been bragging about how investment-savvy they were?
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Suppose that you initially invested $10,000 in the Stivers mutual fund and $5,000 in theTrippi mutual fund. The value of each investment at the end of each subsequent year isprovided in the table:Year Stivers ($) Trippi ($)1 11,000 5,6002 12,000 6,3003 13,000 6,9004 14,000 7,6005 15,000 8,5006 16,000 9,2007 17,000 9,9008 18,000 10,600Which of the two mutual funds performed better over this time period?