The Bruin Stock Fund sells Class A shares that have a front-end load of 5.70 percent, a 12b-1 fee of .23 percent, and other fees of .73 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.50 percent, and other fees of .73 percent. If the portfolio return is 10 percent per year and you plan to sell after the third year, should you invest in Class A or Class B shares? Explain. (PRACTICE) What if your investment horizon is 20 years? Su
The Bruin Stock Fund sells Class A shares that have a front-end load of 5.70 percent, a 12b-1 fee of .23 percent, and other fees of .73 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.50 percent, and other fees of .73 percent. If the portfolio return is 10 percent per year and you plan to sell after the third year, should you invest in Class A or Class B shares? Explain. (PRACTICE) What if your investment horizon is 20 years? Su
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
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Transcribed Image Text:The Bruin Stock Fund sells Class A shares that have a front-end load of 5.70
percent, a 12b-1 fee of .23 percent, and other fees of .73 percent. There are
also Class B shares with a 5 percent CDSC that declines 1 percent per year,
a 12b-1 fee of 1.50 percent, and other fees of .73 percent.
If the portfolio return is 10 percent per year and you plan to sell after the
third year, should you invest in Class A or Class B shares? Explain.
(PRACTICE) What if your investment horizon is 20 years?
Su
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