A no-load mutual fund has $400 million in assets, 50 million in debt, and 12 million shares at the start of the year and with $450 million in assets, 40 million in debt, and 13 million shares at the end of the year. During the year investors have received income distributions of $.259 per share and capital gain distributions of $.20 per share. What is the rate of return on the fund? a) 5.3% b) 10.52% c) 7.2% d) 9.7%
A no-load mutual fund has $400 million in assets, 50 million in debt, and 12 million shares at the start of the year and with $450 million in assets, 40 million in debt, and 13 million shares at the end of the year. During the year investors have received income distributions of $.259 per share and capital gain distributions of $.20 per share. What is the rate of return on the fund? a) 5.3% b) 10.52% c) 7.2% d) 9.7%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 192.B is wrong
Transcribed Image Text:A no-load mutual fund has $400 million in assets, 50 million in debt, and 12 million shares at the start of the year and with $450 million
in assets, 40 million in debt, and 13 million shares at the end of the year. During the year investors have received income distributions
of $.259 per share and capital gain distributions of $.20 per share. What is the rate of return on the fund?
a) 5.3%
Ob) 10.52%
c) 7.2%
d) 9.7%
e) -7.63%
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