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19 June, 20:30

Consider a mutual fund with $300 million in assets at the start of the year and 12 million shares outstanding. If the gross return on assets is 18% and the total expense ratio is 2% of the year-end value, what is the rate of return on the fund?

A 15.64%

B 16%

C 17.25%

D 17.5%

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  1. 19 June, 20:32
    0
    A 15.64%

    Explanation:

    300*1.18 = 354

    354*0.02 = 7.08

    354 - 7.08 = 346.92

    rate of return = 346.92/300

    = 15.64%

    Therefore, The rate of return on the fund is 15.64%
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