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Author Question: You are considering investing in a no-load mutual fund that focuses on growth stocks or in an index ... (Read 71 times)

Mr. Wonderful

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Question 1

Use the following two columns of items to answer the matching questions below:


◦ funds that sell shares to individuals and invest the proceeds in bonds
◦ mutual funds that focus on a specific industry
◦ mutual funds that focus on stocks that are expected to grow at a very high rate
◦ mutual funds that focus on firms that pay a high level of dividends
◦ mutual funds that contain both growth stocks and stocks that pay dividends

Question 2

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


◦ the index fund.
◦ the growth fund.
◦ some of both.
◦ neither; the expenses are too high.


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Marked as best answer by Mr. Wonderful on Apr 14, 2019

al

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