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2. You are considering an investment in one of two mutual funds, Fund A and Fund B. Fund A has a front-end load of 2%,
2. You are considering an investment in one of two mutual funds, Fund A and Fund B. Fund A has a front-end load of 2%, a back-end load of 1%, and a true expense ratio of 0.75%. Fund B has a front-end load of 1%, a back-end load of 1%, and a true expense ratio of 1.25%. Both funds earn an expected return of 10%. 1. Which fund should you select if you plan to invest for two years? (Please include the back-end load in your calculation.) 1. Which fund should you select if you plan to invest for seven years? (Please include the back-end load in your calculation.) 1. You should have found that one fund is better for a two-year investment, and the other is better for a seven- year investment. Explain why
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