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

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Finance

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 %

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