CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

If the gross returns are the same for a small fund and a large fund, which one should have a higher net return, all other factors being equal?

A. The small fund
B. The large fund
C. The net return should be the same.
Correct Answer: B

This is because the large fund can spread its largely fixed administrative expenses over a larger asset base.

User Contributed Comments 3

User Comment
johntan1979 And most large funds offer discounts for longer holds.
leuping Johntan1979 is an absolute legend.
houstcarr well if it can spread its fixed costs over a larger base... then not all other factors are equal.
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