Question $7$ of $8$

Question $7$

$20$ points

The Bruin Stock Fund sells Class A shares that have a front$-$end load of $5\mathrm{.}70$ percent, a $12b-1$ fee of $\mathrm{.}23$ percent, and other fees of $\mathrm{.}73$ percent. There are also Class B shares with a $5$ percent CDSC that declines $1$ percent per year, a $12b-1$ fee of $1\mathrm{.}50$ percent, and other fees of $\mathrm{.}73$ percent.

If the portfolio return is $10$ percent per year and you plan to sell after the third year, should you invest in Class A or Class B shares? Explain.

$($PRACTICE$)$ What if your investment horizon is $20$ years?