Actively managed mutual funds charge higher management fees than passive funds. Assume that the net return to an active fund (after fees) is 9.5% (0.79% per month) and the net return to a passive fund is 10.5% (0.875% per month)
Assume that an investor saves $600 per month (end-of-month) over thirty years. What is the difference in the future value of savings between investing in an active fund and a passive fund?
A) $295,152.00
B) $120,519.40
C) $247,352.36
D) $301,732.21
A
You might also like to view...
Writing the tentative headline of a news release in all-capital letters is not a good way to identify the story
Indicate whether the statement is true or false
The common law of Europe is called the ________
A. lex mercatoria B. jus commune C. jus cogens D. Shari'a
Caterpillar and Texas Instruments are two firms that have benefited from the use of:
A) the multidomestic strategy option. B) the international strategy option. C) the transnational strategy option. D) the maquiladora system in Europe. E) the global strategy option.
Which of the following is true of common stocks?
A) The common stock of a corporation can be either privately or publicly owned. B) Firms often issue common stock with no par value. C) Preemptive rights often result in a dilution of ownership. D) A firm's corporate charter indicates the rate at which dividends are paid.