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

question 55

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 with $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 $.50 per share and capital gain distributions of $.30 per share. If the total expense ratio is .75%, what is the rate of return on the fund?

• A) 12.09%
• B) 12.99%
• C) 8.25%
• D) The answer cannot be determined from the information given.

---

Definitions:

Core Principles

Fundamental beliefs or values that serve as the foundational guidelines for a business, organization, or individual's actions and decisions.

Professional Selling

The process of engaging in personal or virtual interaction with potential buyers to understand their needs and offer solutions that match those needs, conducted in a business-to-business (B2B) context.

Closing The Sale

The final step in the sales process where the salesperson successfully convinces the customer to make a purchase.

Accomplishing

Achieving or completing a task, goal, or objective through effort or a series of steps.