Methodist University CH12 Mutual Funds Options & Investment Objectives Paper

PERSONAL FINANCE: BUS – 3000

Personal Finance: Building Your Future: Second Edition

Authors: Robert B. Walker & Kristy P. Walker

ISBN: 978-0-0-07-786172-8

MHID: 0-07-786172-8

mheducation.com/highered

This is for a discussion board: (Evaluate Mutual Funds in terms of their class, commission, and fee structure LO 12 – 4): (Due 11/24/2019)

Instruction: Answer the Chapter 12 (Mutual Funds) “you’re the expert” question #2 on page 324 and discuss/explain your answer.

Chapter 12, pp. 324 “You’re the Expert.”: Question 2: Geoff has two Mutual Fund options with the same in-vestment objective and the same risks. One is a No-Load Mutual Fund with an expense ratio of 0.50%; it has historically returned 7.5%The other Fund has a Front-End Load Fee of 5% and an expense ratio of 1.20%; It has historically returned 8.2%

In which Fund would you suggest Geoff invest and Why?(LO 12 – 4)