What is the rate of return on the fund

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1. Consider a mutual fund with $800 million in assets at the start of the year, and 4 million shares outstanding. If the gross return on assets is 15% and the total expense ratio is 3% of the year end value, what is the rate of return on the fund?

2. The Stone Harbor Fund is a closed-end investment company with a portfolio currently worth $375 million. It has liabilities of $25 million and 7 million shares outstanding. (a) If the fund sells for $52 a share, what is its premium or discount as a percent of NAV? (b) Explain briefly why the fund's share would sell at discount or premium from the NAV?

3. The Wildwood Fund sells Class A shares with a front-end load of 4% and Class B Shares with 12b-1 fees of 2.0% annually but no load. If you plan to sell the fund after 4 years, are Class A or Class B shares the better choice? Assume a 12% annual return net of expenses. (Compute future values)

Reference no: EM132666187

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