Consider two mutual funds, A and B. While each mutual fund generates a return of 7%, they have different expense ratios. Mutual fund A has an expense ratio of 3.0%, while mutual fund B has an expense ratio of 37.0%.

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