A mutual fund holds the following assets at the beginning of the year: 8,000 shares of...

A mutual fund holds the following assets at the beginning of the year:

8,000 shares of FB, price $180

1250 shares of AMZN, price $1100

1100 shares of GOOG, price $950

The mutual fund has 910,000 number of shares issued at this point. The mutual fund has 1.2% operating expenses, 0.5% 12b-1 fees and a 4% front-end load. Expenses and fees are deducted from assets at the end of the year. At the end of the year, the assets held by the fund are worth $ 4.4m (before expenses) and there are 900,000 shares outstanding. Just before the end of the year, the fund realized $0.3m capital gains and received $0.2m dividends. What is the reported return on the fund? (Provide your answer in %, rounded to two decimals, omitting the % sign. Please show all formulae, solutions and steps.)

Solutions

Expert Solution

retuen reported is 21.698. Or 21.70

jeff jeffy answered 1 year ago

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