You are going to invest in a stock mutual fund with a 4 percent front-end load and a 1.52 percent expense ratio. You also can invest in a money market mutual fund with a 2.4 percent return and an expense ratio of .10 percent.
If you plan to keep your investment for 2 years, what annual return must the stock mutual fund earn to exceed an investment in the money market fund?
What if your investment horizon is 9 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
2 years %
9 years %