Jack invests primarily in Canada Treasury bills. Since T-bills are short-term, they must be replaced as they mature, resulting in significant turnover through the reinvestment in subsequent T-bill issues. Mack invests primarily in three growth-oriented stock mutual funds, adding to them monthly through constant dollar averaging by investing the same fixed amount each month through automatic debit to his bank account. Both have been following their investment strategies over the past 10 years. Would Jack or Mack be more interested in inflation adjusted returns on their investments? Which would be more interested in transaction costs?

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The Answer of Jack invests primarily in Canada Treasury bills. Since T-bills are short-term, they must be replaced as they mature, resulting in significant turnover through the reinvestment in subsequent T-bill issues. Mack invests primarily in three growth-oriented stock mutual funds, adding to them monthly through constant dollar averaging by investing the same fixed amount each month through automatic debit to his bank account. Both have been following their investment strategies over the past 10 years. Would Jack or Mack be more interested in inflation adjusted returns on their investments? Which would be more interested in transaction costs?

Jack Invests Primarily in Canada Treasury Bills