Consider a Mutual Fund with $300 Million in Assets at the Start

question 42

Multiple Choice

Consider a mutual fund with $300 million in assets at the start of the year,and 12 million shares outstanding.If the gross return on assets is 18% and the total expense ratio is 2% of the year end value,what is the rate of return on the fund?

• A) 15.64%
• B) 16.00%
• C) 17.25%
• D) 17.50%

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Definitions:

Congeneric Merger

A type of acquisition where two companies operate in the same industry but do not offer the same products or services.

Combining Companies

The process of merging or acquiring companies to enhance competitive advantage, expand market share or diversify offerings.

Related Businesses

Entities or companies that are connected by activities, products, services, or market sectors.

Oligopoly

A market structure characterized by a few firms dominating the market, which can lead to limited competition and potentially higher prices for consumers.