Question: Two mutual funds have the same manager and hold identical portfolios. The Flagship Fund charges a 1% front-end load and no other fees. The Starboard

Two mutual funds have the same manager and hold identical portfolios. The Flagship Fund charges a 1% front-end load and no other fees. The Starboard Fund charges a 1% expense ratio and no other fees. Donald thinks the portfolio of assets in these funds will go up and he wants to purchase one of the funds now and sell that fund in three months to profit from his outlook. Which fund should he purchase and why?

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