Consider a No-Load Mutual Fund with $200 Million in Assets

question 37

Multiple Choice

Consider a no-load mutual fund with $200 million in assets and 10 million shares at the start of the year,and $250 million in assets and 11 million shares at the end of the year.During the year investors have received income distributions of $2 per share,and capital gains distributions of $0.25 per share.Assuming that the fund carries no debt,and that the total expense ratio is 1%,what is the rate of return on the fund?

• A) 36.25%
• B) 24.90%
• C) 23.85%
• D) There is not sufficient information to answer this question

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