Actually outperform the no-load fund by such margin

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Muture fund needs to pay a load. In order to earn back a load of 5%, the fund would have to pay on average, year in and year out for over 5 years, more than a 1% higher return than a similar no-load fund. Using the Arbitrage Theory to explain why you would not expect the load fund to actually outperform the no-load fund by such a margin?

Reference no: EM131176672

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