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

question 3

Multiple Choice

Consider a no-load mutual fund with $200 million in assets and 10 million shares at the start of the year and with $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 gain distributions of $.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) 11.19%
• B) 23.75%
• C) 24.64%
• D) The answer cannot be determined from the information given.

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