Suppose that the rate of return on the fund portfolio is 10

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The Equity Fund sells Class A shares with a front-end load of 6% and Class B shares with 12-1 fees of 1.0% annually as well as redemption fees that start at 5% and fall by 1% for each full year the investor holds the portfolio (until the fifth year). Assume the rate of return on the fund portfolio is 10% annually. What will be the value of $10,000 investment in Class A and Class B shares if the shares are redeemed after:

a. 1 year?

b. 4 years?

c. 8 years?

Reference no: EM13476902

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