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The Bull Fund offers three classes of shares for investors. Class A shares charge a 2 . 0 0 % frontload, 0 . 0 0

The Bull Fund offers three classes of shares for investors. Class A shares charge a 2.00% frontload, 0.00%12b-1, and 1.00% management fee. Class B shares charge a 1.00% front-load, 0.00%12b-1, and 1.25% management fee. Class C shares have no load and charge 0.75%12b-1, and 0.75% management fee. Assume the expected rate of return (before fees) on the fund is 8% and you intend to invest $10,000. Which class would you prefer if your holding period is three years?
Data
Class A
Class B
Class C
Front load
2.0%
1.0%
0.0%
12b-1 fee
0.00%
0.00%
0.75%
Mgt fee
1.00%
1.25%
0.75%
C shares, because the value will be $12,079.50
B, shares, because the value will be $12,127.41
C shares, because the value will be $12,059.50
B, shares because the value will be $12,197.00
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