## The Bruin Stock Fund sells Class A shares that have a front-end load of 4.8 percent, a 12b-1 fee of 0.42 percent, and other fees of 1.3 perc

Question

The Bruin Stock Fund sells Class A shares that have a front-end load of 4.8 percent, a 12b-1 fee of 0.42 percent, and other fees of 1.3 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.95 percent, and other fees of 1.3 percent. Assume the portfolio return is 11 percent per year. What is the value of $1 invested in each share class if your investment horizon is 3 years? Class A $ Class B $ What if your investment horizon is 20 years?

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2021-10-22T05:20:55+00:00
2021-10-22T05:20:55+00:00 2 Answers
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## Answers ( )

Answer:Step-by-step explanation:Investment Amount Net of Front end Load (1 – 0.048) = $0.952

The value of $1 invested in each share class if investment horizon is 3 yearsSIMILARLY,

The value of $1 invested in each share class if investment horizon is 20 yearsAnswer:Part 1 :The total investment for,Class A = $1.24

Class B = $ 1.23

Part 2:The total investment for,Class A = $ 5.62

Class B = $ 4.45

Step-by-step explanation:The amount of investment Net of Front end Load,

Part 1:If the investment horizon is 3 years, the value of $1 invested in each share class for

Class Abecome,The value of $1 invested in each share class for

Class A is $1.24.If the investment horizon is 3 years, the value of $1 invested in each share class for

Class Bbecome,The value of $1 invested in each share class for

Class B is $1.23.Part 2:If the investment horizon is 20 years, the value of $1 invested in each share class for

Class Abecome,The value of $1 invested in each share class for

Class A is $5.62.If the investment horizon is 20 years, the value of $1 invested in each share class for

Class Bbecome,The value of $1 invested in each share class for

Class B is $4.45.