Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Investments Fund sells Class A shares with a front-end load of 8% 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 8% 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 0.5% for each full year the investor holds the portfolio (until the tenth year). Assume the portfolio rate of return net of operating expenses is 12% annually. If you plan to sell the fund after 5 years, what is the final amount you can expect to get from Class B shares if your initial investment is $1000?
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