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17. The table below lists the fees for two different classes of a mutual fund. Both classes invest in the same equity portfolio. Assume the
17. The table below lists the fees for two different classes of a mutual fund. Both classes invest in the same equity portfolio. Assume the annual rate of return on the equity portfolio is 10%. (a) With an initial investment oI $1,000, calculate and compare the net returns for the two classes over a five-year investment horizon? (2pts) (b) A candidate applied for an internship position at this mutual fund company. In the interview, he said: "Given the fee structure in the table, Class A probably has a larger bid-ask spread than Class C in the market". Critique his comment. (2pts)
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