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Problem 4-16 Expenses and Returns (LO2, CFA2) The Bruin Stock Fund sells Class A shares that have a front-end load of 5.1 percent, a 12b-1
Problem 4-16 Expenses and Returns (LO2, CFA2) The Bruin Stock Fund sells Class A shares that have a front-end load of 5.1 percent, a 12b-1 fee of 0.36 percent, and other fees of 1.12 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.65 percent, and other fees of 1.12 percent. Assume the portfolio return is 11 percent per year. a. What is the value of $1 invested in each share class if your investment horizon is 3 years? (Do not round intermediate calculations Round your answers to 2 decimal places.) Investment Value Class A Class B b. What if your investment horizon is 20 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Investment Value Class A Class B
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