Consider two mutual funds, A and B. While each mutual fund generates a return of 7.9%, they have different expense ratios. Mutual fund A has an expense ratio of 4.0%, while mutual fund B has an expense ratio of 39.0%.

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 (increase/decrease) for longer time horizons.

True or False: Some large mutual funds have increased their expense ratios despite opportunities to capitalize on economies of scale.

True

False