Question 13 An equity fund sells class A shares with a front end load of 4% and class B shares with 12b-1 fees of 0.5% annually as well as back-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolio (until the fifth year). Assume the rate of return on the fund portfolio net of operating expenses is 10% annually. What will be the value of a $10,000 investment in class A and class B shares if the shares are sold after? (a) one-year (b) four years (c) ten years? (d) Which structure provides higher net proceeds at the end of each investment horizon? (8 marks)