We discussed a study in chapter 4 that examined mutual fund fees. The study found that:

A. Controlling for mutual fund performance, fund risk, service and other product features, there are large spreads in annual fees across similar funds, a finding that is inconsistent with competitive markets for mutual funds.

B. Controlling for mutual fund performance, fund risk, service and other product features, there are small spreads in annual fees across similar funds, a finding that is consistent with competitive markets for mutual funds.

C. Almost all mutual funds have very low fees.

D. Paying high front-end loads will guarantee market beating performance.