If both funds portfolios have an average return of 10 which


Assume that Fund A charges a front-end load of 5%, an expense ratio of 0.7% and no 12b-1 fee. Assume that Fund B charges no front-end load, 12b-1 fees of 0.4% and an expense ratio of 1.1%. If both funds’ portfolios have an average return of 10%, which is the better investment after 10 years given an initial investment of $1,000?

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Financial Management: If both funds portfolios have an average return of 10 which
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