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You have $6,100 to invest. The mutual fund you are considering offers two classes of shares. Class A shares have no front-end load, an expense
You have $6,100 to invest. The mutual fund you are considering offers two classes of shares. Class A shares have no front-end load, an expense ratio of 3.1%, and an expected gross return of 7.9% per year. Class B shares have a front-end load of 6.6%, an expense ratio of 1.2%, and an expected gross return of 7.2% per year. a. Complete the table below. (Round your answers to 2 decimal places.) Class A Class B Initial investment Value after 4 years Value after 8 years b. Which of the classes you would prefer if you plan to hold the shares for four years? (Click to select) v c. Which would you prefer if you plan to hold them for eight years? (Click to select) v
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