Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Investments Fund sells Class A shares with a front-end load of 7% and Class B shares with 12b-1 fees of 0.75% annually as well
The Investments Fund sells Class A shares with a front-end load of 7% and Class B shares with 12b-1 fees of 0.75% 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 that you have $1,000 to invest and the portfolio rate of return net of operating expenses is 15% annually. a-1. If you invest in each fund and sell after 4 years, how much will you receive from each sale? (Round your answers to 2 decimal places.) X Answer is complete but not entirely correct. Amounts Class A $ 930.00 X Class B $ 1,626.57 X
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started