CTP Exam Dumps | An employee is considering two investment strategies for his 401(k) plan: Strategy #1: Invest all contributions

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Question 18/279

An employee is considering two investment strategies for his 401(k) plan:
Strategy #1: Invest all contributions in a money market fund that has returned 5% annually
Strategy #2: Invest all contributions in a stock fund that has returned 9% on average, although annual returns have varied between (2%) and 12%
Assuming that the employee makes a one-time investment of $12,000 and that both strategies continue to perform as they have historically, how much more or less could the stock fund be worth after one year compared to the money market fund?

A. Between ($840) and $840

B. Between ($480) and $480

C. Between ($1,680) and $1,680

D. Between ($1,080) and $1,080

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