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?

Question

Quizplus · Accepted Answer

$300,000,000 × (1.18) = $354,000,000
0.02 × $354,000,000 = $7,080,000 11eaaae8_8b6e_07e6_a4b8_89568e40e7c3_TB6474_00 = 15.64%

Consider a Mutual Fund with $300 Million in Assets at the Start