Discovery Growth and Income fund has $600 million in total assets; it paid $21 million in dividends and $3.4 million in total fund expenses. What is its expense ratio?

Name: Discovery Growth and Income fund has $600 million in total assets; it paid $21 million in dividends and $3.4 million in total fund expenses. What is its expense ratio?
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Question

Quizplus · Accepted Answer

The expense ratio is calculated by dividing the total fund expenses by the total assets. Here, $3.4 million divided by $600 million equals 0.00567, or 0.57%.

Discovery Growth and Income Fund Has $600 Million in Total