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Question 2 ( 2 5 Marls ) : Bell Ltd sells two types of shares, C + and C + + . C + shares
Question Marls:
Bell Ltd sells two types of shares, and C shares are sold with frontend load fee of whilst
Type C shares are not subject to frontend load fee but are charged to investment management fee of
per annum as well as exit backend load fee that start at and reduce by for each fall year
the investor holds the portfolio until the year The annual rate of retum for both types of shares is
a Calculate the value of Rs investment made by investor Mr Leaf in Type C shares if the
shares are disposed after i year and ii years.
Marks
b Calculate the value of Rs investment made by investor Mrs Beans in Type C shares
if the shares are disposed after i year and ii years.
Marks
c As an analyst, which types of shares will you recommend the investor to buy?
Marks
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