Consider a mutual fund with $209 million in assets at the start of the year and...

Consider a mutual fund with $209 million in assets at the start of the year and with 10 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 1.00%, which are deducted from portfolio assets at year-end.

a.	What is net asset value at the start and end of the year? (Enter your answers in dollars rounded to 3 decimal places.)

	Net Asset Value
Start of the year	$
End of the year

b.	What is the rate of return for an investor in the fund? (Use rounded "Net Asset Value". Round your answer to 2 decimal places.)

Rate of return

%

Expert Solution

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jeff jeffy answered 8 months ago

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