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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

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.

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