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.

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Definitions:

Smooth Surface

A type of physical surface that is even and untextured, often found in manufactured objects and natural formations.

Synovial Membrane

The soft tissue that lines the inner surface of synovial joints, producing synovial fluid for lubrication.

Lubricating Film

A thin layer of liquid or substance applied to surfaces to minimize friction and wear, commonly found in mechanical systems, joints, and tissues.

Smooth Surface

A surface with an even and uninterrupted texture, free of noticeable bumps, ridges, or indentations.