Answer:
273.75%
Explanation:
Note: Capital Gain distribution would be $50.25, NOT $.25 (typing mistake)
This is no-load MF. But there are other two types of MF (Mutual Funds).
If FL MF (Front Load Mutual Fund), investors pay something upfront when investing.
In BL MF (Back Load Mutual Fund), investors pay when exiting the MF.
Here, this is no load, so calulations are easier.
Now,
NAV (Net Asset Value) is the total assets divided by number of shares.
NAV beginning of year and NAV end of year. Total expense ratio will be adjusted from NAV, end of year.
NAV, beginning = 200 million / 10 million shares = $20
NAV, end = 250 - (0.01*250) / 11 million shares = $22.5
Now,
Rate of Return of the Fund = (NAV,end - NAV,beginning + Income Distribution + Capital Gain Distribution - Liabilities) / NAV, beginning
We have:
Rate of Return = ($22.5 - $20 + $2 + $50.25 - $0) / $20 = 2.7375
Converting to percentage:
2.7375 * 100 = 273.75%
