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Jackson is evaluating two potential money managers for his retirement investments. The managers have proposed very similar investment strategies, having similar annual expected return, volatility,
Jackson is evaluating two potential money managers for his retirement investments. The managers have proposed very similar investment strategies, having similar annual expected return, volatility, and market beta predictions. Both managers believe they can deliver 10% raw returns annually, but Manager A charges 0.1% per year in fees and Manager B charges 1% per year in fees. Assuming Jackson is investing $10,000 for a 10 year horizon, how much additional value would the investments have with Manager A over Manager B?
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