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You have the opportunity to invest 10000 in the two mutual funds below. Fund A: Gross annual return of the fund is 7%, with a
You have the opportunity to invest 10000 in the two mutual funds below. Fund A: Gross annual return of the fund is 7%, with a 4% front-end load and 12b-1 fees of 0.85%. Fund B: Gross annual returns of 6%, no load fee and 12b-1 fees of 1.4%. Which fund should you invest in if your investment horizon is (i) 1 year (ii) 2 years? Please write the answers in detail in these two situations.
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