The Bruin Stock Fund sells Class A shares that have a front-end load of 5.7 percent, a 12b-1 fee of .24 percent, and other fees of .76 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.05 percent, and other fees of 76 percent. Assume the portfolio return is 11 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.) Class A Class B Investment Value b. What if your investment horizon is 20 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Class A Class B Investment Value
The Bruin Stock Fund sells Class A shares that have a front-end load of 5.7 percent, a 12b-1 fee of .24 percent, and other fees of .76 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.05 percent, and other fees of 76 percent. Assume the portfolio return is 11 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.) Class A Class B Investment Value b. What if your investment horizon is 20 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Class A Class B Investment Value
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The Bruin Stock Fund sells Class A shares that have a front-end load of 5.7 percent, a 12b-1 fee of .24 percent, and other fees of .76
percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.05 percent, and other
fees of .76 percent. Assume the portfolio return is 11 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.)
Class A
Class B
Investment
Value
b. What if your investment horizon is 20 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Investment
Value
Class A
Class B
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