Question: Consider two mutual funds, A and B. While each mutual fund generates a return of 9.3%, they have different expense ratios, Mutual fund A has
Consider two mutual funds, A and B. While each mutual fund generates a return of 9.3%, they have different expense ratios, Mutual fund A has an expense ratio of 3.096 , while mutual fund B has an expense ratio of 25.0%. Mutual fund A generates an actual return of W. (net of expenses), while mutual fund B generates an actual return of of (net of expenses). All else equal, the difference in actual returns (net of expenses) between the two mutual funds will for longer time heritons. True or False: Some large mutual funds have increased their expense ratios despite opportunities to capitalize on economles of scale. True? False
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
