hares that have a front-end load of 5.25 percent, a 12b-1 fee of .33 percent, and other fees of 1.03 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.5 percent, and other fees of 1.03 percent. Assume the portfolio return is 8 percent per year.   a. What is the value of $1 invested in each share class if your investment horizon is 3 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 14P
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The Bruin Stock Fund sells Class A shares that have a front-end load of 5.25 percent, a 12b-1 fee of .33 percent, and other fees of 1.03 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.5 percent, and other fees of 1.03 percent. Assume the portfolio return is 8 percent per year.

 

a. What is the value of $1 invested in each share class if your investment horizon is 3 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

 

 

 

b. What if your investment horizon is 20 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

 

 
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