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
A) the index fund.
B) the growth fund.
C) some of both.
D) neither; the expenses are too high.
Answer: B
Business
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