Consider a mutual fund with $300 million in assets at the start of the year and 12 million shares outstanding. If the gross return on assets is 18% and the total expense ratio is 2% of the year-end value, what is the rate of return on the fund?

A 15.64%

B 16%

C 17.25%

D 17.5%

Question

Business

Mueller

2 March, 05:06

Consider a mutual fund with $300 million in assets at the start of the year and 12 million shares outstanding. If the gross return on assets is 18% and the total expense ratio is 2% of the year-end value, what is the rate of return on the fund?

A 15.64%

B 16%

C 17.25%

D 17.5%

+4

Answers (1)

Know the Answer?

Andreas Austin · Answer 1

A 15.64%

Explanation:

300*1.18 = 354

354*0.02 = 7.08

354 - 7.08 = 346.92

rate of return = 346.92/300

= 15.64%

Therefore, The rate of return on the fund is 15.64%

Consider a mutual fund with $300 million in assets at the start of the year and 12 million shares outstanding. If the gross return on assets is 18% and the total expense ratio is 2% of the year-end value, what is the rate of return on the fund?A 15.64%B 16%C 17.25%D 17.5%

Consider a mutual fund with $300 million in assets at the start of the year and 12 million shares outstanding. If the gross return on assets is 18% and the total expense ratio is 2% of the year-end value, what is the rate of return on the fund?

A 15.64%

B 16%

C 17.25%

D 17.5%