Check my w Problem 4-15 Consider a mutual fund with $360 million in assets at the start of the year and 10 million shares outstanding The fund invests ina portfolo of stocks that provides dividend income at the end of the year of $17 million. The stocks included in the fund's portfolo increase in price by 10%. but no securities are sold and there are no capital galns distributions. The fund charges 12b-1 fees of 75%, which are deducted from portfolo assets at year-end a. What is the fund's net asset value at the start and end of the year? (Round your answers to 2 decimel places.) Net Asset Value Start of the year 36 00 End of the year 39.60 b. What is the rate of return for an investor in the fund? (Round your Intermediete calculetions to 3 decimal piaces and final answer to 2 decimal pleces.) Rate of return Next>

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Problem 4-15
Consider a mutual fund with $360 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of
stocks that provides dividend income at the end of the year of $17 million. The stocks included in the fund's portfolo increase in price by 10%,
but no securities are sold and there are no capital galns distributions. The fund charges 12b-1 fees of 75%, which are deducted from portfolo
assets at year-end
a. What is the fund's net asset value at the start and end of the year? (Round your answers to 2 decimal places.)
Net Asset Value
Start of the year
End of the year
36 00
39.60
b. What is the rate of return for an investor in the fund? (Round your Intermediete calculetions to 3 decimal piaces and final answer to 2
decimal pleces.)
Rate of return
Next>
Transcribed Image Text:Check myy work Problem 4-15 Consider a mutual fund with $360 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $17 million. The stocks included in the fund's portfolo increase in price by 10%, but no securities are sold and there are no capital galns distributions. The fund charges 12b-1 fees of 75%, which are deducted from portfolo assets at year-end a. What is the fund's net asset value at the start and end of the year? (Round your answers to 2 decimal places.) Net Asset Value Start of the year End of the year 36 00 39.60 b. What is the rate of return for an investor in the fund? (Round your Intermediete calculetions to 3 decimal piaces and final answer to 2 decimal pleces.) Rate of return Next>
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