The Wildwood Fund Sells Class a Shares with a Front-End

question 85

Multiple Choice

The Wildwood Fund sells Class A shares with a front-end load of 5% and Class B Shares with a 12b-1 fees of 1% annually.If you plan to sell the fund after 4 years,are Class A or Class B shares the better choice? Assume a 10% annual return net of expenses.

• A) Class A
• B) Class B
• C) There is no difference.
• D) There is insufficient information given.

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Definitions:

Savings

The allocation of money that is not spent on consumption in order to be used for future expenses or investments.

Relearn

The process of learning material or skills that one had learned previously but has forgotten or lost proficiency in.

Implicit Memory

A kind of enduring memory that allows us to execute activities without the active realization of past encounters.

Declarative Memory

A type of long-term memory that involves the conscious recall of facts and events.