The Bruin Stock Fund sells Class A shares that have a front-end load of 5.75 percent, a 12b-1 fee of 0.23 percent, and other fees of 0.73 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.00 percent, and other fees of 0.73 percent. Assume the portfolio return is 10 percent per year. a. What is the value of $1 invested in each share class if your investment horizon is 3 years? Note: 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? Note: 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 5.75 percent, a 12b-1 fee of 0.23 percent, and other fees of 0.73 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.00 percent, and other fees of 0.73 percent. Assume the portfolio return is 10 percent per year. a. What is the value of $1 invested in each share class if your investment horizon is 3 years? Note: 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? Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
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 5.75 percent, a 12b-1 fee of 0.23 percent, and other fees
of 0.73 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.00 percent,
and other fees of 0.73 percent. Assume the portfolio return is 10 percent per year.
a. What is the value of $1 invested in each share class if your investment horizon is 3 years?
Note: 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?
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Class A
Class B
Investment
Value
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