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Suppose That, One Year Ago, You Invested $20,000 in Mutual

Question 334

Essay

Suppose that, one year ago, you invested $20,000 in mutual fund A and $10,000 in mutual fund
B. Which fund had the higher rate of return in the past year if the weighted average of the two rates of return exceeds the simple average? Present your reasoning.

Correct Answer:

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The simple average of two rates of retur...

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