The Investments Fund sells Class A shares with a front-end load of 6% and Class C shares with 12b-1 fees of 0.75% annually as well as back-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolio (until the fifth year). Assume that you have $1,000 to invest and the portfolio rate of return net of operating expenses is 11% annually. Required: a-1. If you invest in each fund and sell after 4 years, how much will you receive from each sale? a-2. Are Class A or Class C shares the better choice for you? b-1. If you invest in each fund and sell after 15 years, how much will you receive from each sale? b-2. Are Class A or Class C shares the better choice for you? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 If you invest in each fund and sell after 4 years, how much will you receive from each sale? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Amounts Class A $ 1,426.99 Class C $ 1,447.91
The Investments Fund sells Class A shares with a front-end load of 6% and Class C shares with 12b-1 fees of 0.75% annually as well as back-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolio (until the fifth year). Assume that you have $1,000 to invest and the portfolio rate of return net of operating expenses is 11% annually. Required: a-1. If you invest in each fund and sell after 4 years, how much will you receive from each sale? a-2. Are Class A or Class C shares the better choice for you? b-1. If you invest in each fund and sell after 15 years, how much will you receive from each sale? b-2. Are Class A or Class C shares the better choice for you? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 If you invest in each fund and sell after 4 years, how much will you receive from each sale? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Amounts Class A $ 1,426.99 Class C $ 1,447.91
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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