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.)
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.)
The rate of return refers to the expected cash inflows out of an investment in the near future on the basis of the current market conditions.
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