Consider a mutual fund with $213 million in assets at the start
of the year and with 12 million shares outstanding. The fund
invests in a portfolio of stocks that provides dividend income at
the end of the year of $3 million. The stocks included in the
fund's portfolio increase in price by 6%, but no securities are
sold, and there are no capital gains distributions. The fund
charges 12b-1 fees of 1.00%, which are deducted from portfolio
assets at year-end.
a. What is the net asset value at the start and end of the year? (Enter your answers in dollars rounded to 3 decimal places.)
b. What is the rate of return for an investor in
the fund? (Do not round intermediate calculations. Round
your answer to 2 decimal places.)
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Consider a mutual fund with $213 million in assets at the start of the year and...
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