Question
8. Fund A has a 12b-1 charge of 1% and an expense ratio of 0.75%, fund B has a front-end load of 4%, no 12b-1
8. Fund A has a 12b-1 charge of 1% and an expense ratio of 0.75%, fund B has a front-end load of 4%, no 12b-1 charge and an expense ratio of 0.25%. Assume the gross rate of return on both funds is 6% per year. How much will an investment in each fund grow to after
(i) 1 year?
(ii) 3 years?
(iii) 10 years?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
