You Consider Investing $10,000 in a Stock Mutual Fund and You

question 33

Multiple Choice

You consider investing $10,000 in a stock mutual fund and you are choosing between Fund A, which has a front-end load of 3%, and Fund B, which has a back-end load of 3%. Expected returns and fees of the two funds are identical. Which fund would you choose?

• A) Fund A
• B) Fund B
• C) You are indifferent (total expected returns are the same after accounting for the loads)
• D) More information is needed to make the choice.

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