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Consider two mutual funds, A and B. While each mutual fund generates a return of 7.2%, they have different expense ratios. Mutual fund A has

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Consider two mutual funds, A and B. While each mutual fund generates a return of 7.2%, they have different expense ratios. Mutual fund A has an expense ratio of 2.0%, while mutual fund 8 has an expense ratio of 28.0%. Mutual fund A generates an actual return of % (net of expenses), while mutual fund B generates an actual return of % (net of expenses). All else equal, the difference in actual returns (net of expenses) between the two mutual funds will for longer time horizons increase True or False: The SEC requires that the board of any mutual fund is comprised primarily of employees of that decrease True O False Consider two mutual funds, A and B. While each mutual fund generates a return of 7.2%, they have different expense ratios. Mutual fund A has an expense ratio of 2.0%, while mutual fund B has an expense ratio of 28.0%. Mutual fund A generates an actual return of 1% (net of expenses), while mutual fund B generates an actual return of % (net of expenses). All else equal, the difference in actual returns (net of expenses) between the two mutual funds will for longer time horizons. V True or False: The SEC requires that the board of any mutual fund is comprised primarily of employees of that mutual fund. O True O False

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