Solution-Which fee structure provides higher net proceeds

Which fee structure provides higher net proceeds

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Reference no: EM132757554

Question: The Equity Fund sells Class A shares with a front-end load of 4% and Class B shares with 12b-1 fees of .5% 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 the rate of return on the fund portfolio net of operating expenses is 10% annually. What will be the value of a $10,000 investment in Class A and Class B shares if the shares are sold after

(a) 1 year,

(b) 4 years,

Which fee structure provides higher net proceeds at the end of each investment horizon?

Reference no: EM132757554

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Which fee structure provides higher net proceeds

Reference no: EM132757554

Reference no: EM132757554

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