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

Question 59

Multiple Choice

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