You have $7000 to invest. The mutual fund you are considering offers two classes of shares. Class A shares have no front-end load, an expense ratio of 1.75%, and an expected gross return of 8.4% per year. Class B shares have a front-end load of 5%, an expense ratio of 0.7%, and an expected gross return of 8.2% per year. How much more money will you make over 8 years if you invest in the Class B shares instead of the Class A shares
You have $7000 to invest. The mutual fund you are considering offers two classes of shares. Class A shares have no front-end load, an expense ratio of 1.75%, and an expected gross return of 8.4% per year. Class B shares have a front-end load of 5%, an expense ratio of 0.7%, and an expected gross return of 8.2% per year. How much more money will you make over 8 years if you invest in the Class B shares instead of the Class A shares
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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You have $7000 to invest. The mutual fund you are considering offers two classes of shares. Class A shares have no front-end load, an expense ratio of 1.75%, and an expected gross return of 8.4% per year. Class B shares have a front-end load of 5%, an expense ratio of 0.7%, and an expected gross return of 8.2% per year. How much more money will you make over 8 years if you invest in the Class B shares instead of the Class A shares?
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