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Trava [24]
3 years ago
14

Consider a mutual fund with $300 million in assets at the start of the year and 12 million shares outstanding. If the gross retu

rn 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%
Business
1 answer:
Vikentia [17]3 years ago
3 0

Answer:

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%

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