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Suppose, an FMP (Fixed Maturity Plan) involving investment through AAA securities is offered for 2 years. The AAA securities are paying an 8% interest on 2-year securities and the expense ratio of the scheme is 0.8%. Which of the following is the indicative return that can be expected by the investor?

Investment And Financial Planning MCQs

Suppose, an FMP (Fixed Maturity Plan) involving investment through AAA securities is offered for 2 years. The AAA securities are paying an 8% interest on 2-year securities and the expense ratio of the scheme is 0.8%. Which of the following is the indicative return that can be expected by the investor?

Answer

Correct Answer:

7.2%

Explanation:

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