Consider a no-load mutual fund with $440 million in assets and 20 million shares at the start of the year and with $490 million in assets and 21 million shares at the end of the year. During the year investors have received income distributions of $3 per share and capital gain distributions of $.30 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?

Consider a no-load mutual fund with $440 million in assets and 20 million shares at the start of the year and with $490 million in assets and 21 million shares at the end of the year. During the year investors have received income distributions of $3 per share and capital gain distributions of $.30 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?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 10P

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