You are considering investing in a no-load mutual fund that focuses on growth stocks or in an index fund.The growth stock fund had an annual return of 15% and expenses of 2%.The index fund had an annual return of 12% and expenses of 1%.Assuming equal risk,you should buy

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Quizplus · Accepted Answer

Both funds have similar risks, and the growth fund had a higher return of 15%. However, the expenses of the growth fund were higher at 2%. Therefore, it is better to invest in the growth fund as the higher return offsets the higher expenses.

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