Assume you are trying to decide between a mutual fund with assets that are expected to grow in value $8\%$ a year over the next $5$ years and a CD that promises a $5\%$ annual return over the same time period. The mutual fund has a $4\%$ front$-$end load, a $1\%$ annual expense ratio, and a $1\%$ back$-$end load that does not decrease with time. Which should you pick? $($Hint: Slides $23-25$ in the "Mutual Funds, ETFs, $..."$ slide set go through a similar problem. These slides were discussed as part of the lecture.$)$

Group of answer choices

You would pick the mutual fund because it has a higher expected return.

You would pick the CD because it has a higher expected return.

They have equal expected returns.