Consider a no-load mutual fund with $252 million in assets, 20 million shares and $36 million in debt at the start of the year. It invests in a portfolio that provides no income but increases price by 9% 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 2%, what is the rate of return on the fund?

SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND YOUR ANSWER TO TWO DECIMAL PLACES AT THE END. ENTER JUST THE NUMBER WITH NO OTHER SIGN. FOR EXAMPLE IF YOUR ANSWER IS 42.5678 ENTER AS 42.57 ONLY.

Answer rating: 100% (QA)

To calculate the rate of return on the fund we need to consider the change in the net asset value NA... View the full answer