Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 27 consider a mutual fund with $211 million in ass

27 Consider a mutual fund with $211 million in assets at the start of the...

80.2K

Verified Solution

Question

Accounting

image

27 Consider a mutual fund with $211 million in assets at the start of the year and with 20 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 7%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 100%, which are deducted from portfolio assets at year-end. a. What is the net asset value at the start and end of the year? (Enter your answers in dollars rounded to 3 decimal places.) 8 02:07:57 Net Asset Value Start of the year End of the year b. What is the rate of return for an investor in the fund? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return %

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students