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You have decided to invest $11,000 in the Pinnacle fund. Over the long haul, the Pinnacle fund is expected to earn a return of 15.25%
You have decided to invest $11,000 in the Pinnacle fund. Over the long haul, the Pinnacle fund is expected to earn a return of 15.25% on the portfolio (gross of fees). However, Pinnacle offers several classes of funds. Therefore, you can choose to pay a front load of 10.0% and escape 12-b1 fees, or you can avoid the load fee by paying 12-b1 fees of 0.75%. a. If your investment horizon is 6 years, what is your expected terminal wealth under each strategy? (Round your answers to 2 decimal places.) No-load fund Front-load fund b. Which option should you choose? O No-load O Front-load
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