A Mutual Fund $($AMF$)$ has $$100m$ in assets and $100$ million shares outstanding. AMF

paid out dividend of $$4m$ and had a price depreciation of $5\%$ during the year. Assume

no capital gain distribution. The $12b-1$ fee is $0\mathrm{.}5\%$ and is deducted from the portfolio

assets at year$-$end.

Calculate AMF's NAV at the end of the year and the rate of return.

NAV$\_1$ is $1\mathrm{.}0305$ ; and Return is $+1\mathrm{.}475\%$

NAV$\_1$ is $0\mathrm{.}94525$ ; and Return is $+1\mathrm{.}475\%$

NAV$\_1$ is $0\mathrm{.}94525$ ; and Return is $-1\mathrm{.}475\%$

NAV$\_1$ is $1\mathrm{.}0305$; and Return is $-1\mathrm{.}475\%$