It Is the no-load "performance" fund with which this thesis is mainlyudconcerned although there is some discussion of load funds. It Is clear that as performance increases, the fee rate increases,udbut as the size of the fund increases, the ability to show any given fundudperformance should decrease. If such conditions are true, then if the fundudIs relatively small, it may be able to show very good performance and thusudcharge a relatively large rate. However, because the fund is small, theudtotal profits may also be small. On the other hand, if the fund is extremelyudlarge, its performance may be relatively poor, thus causing the fee rate toudbecome relatively small. Here again the total profits may be small. ItudIs the purpose of this thesis to determine if, and under what conditions,udthere exists an optimal size which will result in maximum profits for theudmanagers.
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