The Wildwood Fund sells Class A shares with a front-end load of 3.5% and annual operating expenses of 1%.  Class B Shares have a 12b-1 fees of 1.5% annually and annual operating expenses of 0.75%.  You plan to sell the fund after 7 years. Assume a 10% annual return. Assume that your initial investment is $100. Is Class A or Class B the better choice? Group of answer choices   Class A is the better choice Cannot determine the answer from the information given Neither one is better Class B is the better choice

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
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The Wildwood Fund sells Class A shares with a front-end load of 3.5% and annual operating expenses of 1%.  Class B Shares have a 12b-1 fees of 1.5% annually and annual operating expenses of 0.75%.  You plan to sell the fund after 7 years. Assume a 10% annual return. Assume that your initial investment is $100.

Is Class A or Class B the better choice?

Group of answer choices
 
Class A is the better choice
Cannot determine the answer from the information given
Neither one is better
Class B is the better choice
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