1-How do economies of scale in banking relate to the issue of interstate banking? Explain.

2. Is it possible for a bank that is growing and expanding to experience diseconomies of scale? Why or why not?

A mutual fund offers class A shares which have a one-time 5.0% upfront load and an annual expense ratio of 0.76%. This mutual fund also offers class B shares which have an annual 12b-1 fee of 0.55% and an annual expense ratio of 0.87%. Assume that both classes of shares are similar in risk, return, and investment objectives.

4. Which class of shares makes more sense for an investor considering a 10-year investing horizon?

Hint: Find the average annual fee for each type of share and then compare. Check figure: average annual fee for an "A" share is 1.26%.

Go to the Yahoo! Finance website. Type in BPEQX which is the symbol for the UBS U.S. Large Cap Equity Fund.

3. Identify the most recent closing price per share, year-to-date return, 12b-1 fee, and net expense ratio for this fund. Also, in a few sentences, summarize the investing objective for this fund (see the Fund Summary for this information).