Use this information to answer the following questions. 
(a) Which fund does NOT charge a front-end load?
(b) Which fund can best be described as a low-load fund?
(c) What can you say about Fund B with respect to the type of investments it most likely holds?
(d) If you want to buy a fund and hold it for five years, which one of these funds should you purchase based on fund costs? Assume the funds earn a positive rate of return each year.
Definitions:
Financial Leverage
The use of borrowed funds to increase the potential return on an investment.
Shareholder Leverage
The use of borrowed funds by shareholders to increase their potential returns from an investment.
Operating Leverage
A measure of how revenue growth translates into growth in operating income due to fixed costs in a company's business model.
Tax Rate
The percentage at which an individual or corporation is taxed by the government on their income or profits.
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