Consider a No-Load Mutual Fund with $400 Million in Assets,50

question 65

Multiple Choice

Consider a no-load mutual fund with $400 million in assets,50 million in debt,and 15 million shares at the start of the year; and $500 million in assets,40 million in debt,and 18 million shares at the end of the year.During the year investors have received income distributions of $0.50 per share,and capital gains distributions of $0.30 per share.Assuming that the fund carries no debt,and that the total expense ratio is 0.75%,what is the rate of return on the fund?

• A) 12.09%
• B) 12.99%
• C) 8.25%
• D) There is not sufficient information to answer this question

---

Definitions:

Sugar Cube

A small, solid piece of refined sugar, typically used to sweeten beverages.

Electrolyte

A substance that produces an electrically conducting solution when dissolved in a polar solvent, such as water.

Dissociates

To split into separate smaller atoms, ions, or molecules, especially in the context of dissolving in a solution.

Electrodes

Conductors through which electricity enters or leaves a medium, whether it be an electrolytic solution, a solid, or a vacuum.