2/6 pts Question 18 Remember on the first exam, we had an example of a mutual fund paying a load. In order to earn back a load of 5%, the fund would have to pay on average, year in and year out for over five years, more than a 1 % higher return than a similar no-load fund. Use your understanding of the Arbitrage Pricing Theory to explain briefly why you would not expect the load fund to actually outperform the no-load fund by such a margin. Your Answer: The profits through the loads must be riskless. If the ments work effectively then the opportunity should be there. Your response makes no sense. Is it reasonable to conclude that the load fund will outperform enough to earn back its load over time? 2/6 pts Question 18 Remember on the first exam, we had an example of a mutual fund paying a load. In order to earn back a load of 5%, the fund would have to pay on average, year in and year out for over five years, more than a 1 % higher return than a similar no-load fund. Use your understanding of the Arbitrage Pricing Theory to explain briefly why you would not expect the load fund to actually outperform the no-load fund by such a margin. Your Answer: The profits through the loads must be riskless. If the ments work effectively then the opportunity should be there. Your response makes no sense. Is it reasonable to conclude that the load fund will outperform enough to earn back its load over time