Question
A fund sells Class A shares with a front-end load of 5% and Class B shares with 12b-1 fees of 0.5% as well as back-end
A fund sells Class A shares with a front-end load of 5% and Class B shares with 12b-1 fees of 0.5% as well as back-end load fees that starts at 6% and fall by 1% for each holding year. Assume that the fund return net of operating costs is 8% annually. What will be the value of a $10,000 investment in Class A and B if the shares are sold after
(a) 1 year or
(b) 10 years?
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
6th Edition
125991965X, 978-1259919657
