What is the rate of return for an investor in the fund

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Reference no: EM131012228

Consider a mutual fund with $201 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 9%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 0.50%, which are deducted from portfolio assets at year-end.

a) What is net asset value at the start and the end of the year?

Start NAV: $ ____

End NAV: $ ____

b) What is the rate of return for an investor in the fund?

RoR: ____ %

Reference no: EM131012228

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