knovo
Nov 14, 2011, 10:27 AM
You have $10,000 to invest in your
401-K plan. Here are your only choices:
Morgan Stanley S&P 500 Index Fund
Vanguard S&P 500 Index Fund
Schwab S&P 500 Index Fund
Fidelity S&P 500 Index Fund
All four funds have the same one
year, three year and five year returns.
"Life of fund returns" for each fund are as
follows:
Morgan Stanley = 12.5%
Vanguard = 11.9%
Schwab = 13.2%
Fidelity = 14.9%
Annual fees for each fund are as follows:
Morgan Stanley = 36 basis points
Vanguard = 18 basis points
Schwab = 25 basis points
Fidelity = 27 basis points
What is the best way to invest the
$10,000?
a. Equally split among all four funds.
b. 100% in Morgan Stanley.
c. 100% in Vanguard.
d. 100% in Schwab.
e. 100% in Fidelity.
401-K plan. Here are your only choices:
Morgan Stanley S&P 500 Index Fund
Vanguard S&P 500 Index Fund
Schwab S&P 500 Index Fund
Fidelity S&P 500 Index Fund
All four funds have the same one
year, three year and five year returns.
"Life of fund returns" for each fund are as
follows:
Morgan Stanley = 12.5%
Vanguard = 11.9%
Schwab = 13.2%
Fidelity = 14.9%
Annual fees for each fund are as follows:
Morgan Stanley = 36 basis points
Vanguard = 18 basis points
Schwab = 25 basis points
Fidelity = 27 basis points
What is the best way to invest the
$10,000?
a. Equally split among all four funds.
b. 100% in Morgan Stanley.
c. 100% in Vanguard.
d. 100% in Schwab.
e. 100% in Fidelity.