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Expenses and management of mutual funds Suppose you are considering investing $ 3 0 , 0 0 0 in one of two mutual funds: A

Expenses and management of mutual funds
Suppose you are considering investing $30,000 in one of two mutual funds: A or B. Mutual fund A is a load fund that charges 3.00%, while mutual
fund B is a no-load fund.
If you invest in mutual fund A, your sales charge is
. This means that, of your initial $30,000 investment, your actual investment in
the load fund is only $
. If you invest in mutual fund B, you
incur a sales charge.
True or False: Some large mutual funds have increased their expense ratios despite opportunities to capitalize on economies of scale.
True
False
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