Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Investments Fund sells Class A shares with a front-end load of 8% and 12b-1 fees of 0.25%, and Class B shares with 12b-1 fees

The Investments Fund sells Class A shares with a front-end load of 8% and 12b-1 fees of 0.25%, 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 10% annually. If you plan to sell the fund after 7 years, what is the difference between the final amounts of Class A and Class B shares if your initial investment is $1000?

$1764.49

$1829.73

$65.24

$74.52

$55.95

None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Financial Management Text And Cases

Authors: George C Philippatos

1st Edition

0816267162, 978-0816267163

More Books

Students also viewed these Finance questions

Question

2. Describe the basic logic of null hypothesis testing.

Answered: 1 week ago

Question

Is there any dispute that this is the cause?

Answered: 1 week ago