Consider a no-load mutual fund with $100 million in assets, 10 million in debt, and 10 million shares at the start of the year; and $120 million in assets, 12 million in debt, and 12 million shares at the end of the year. During the year investors have received income distributions of $0.50 per share, and capital gains distributions of $0.20 per share. Assuming that the fund carries no debt, what is the rate of return on the fund? 0 0% 7.78% 27.78% O 10%

Consider a no-load mutual fund with $100 million in assets, 10 million in debt, and 10 million shares at the start of the year; and $120 million in assets, 12 million in debt, and 12 million shares at the end of the year. During the year investors have received income distributions of $0.50 per share, and capital gains distributions of $0.20 per share. Assuming that the fund carries no debt, what is the rate of return on the fund? 0 0% 7.78% 27.78% O 10%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 10P

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