A no-load mutual fund has $500 million in assets and 10 million shares at the start of the year, and $550 million in assets and 10.5 million shares at the end of the year. During the year investors have received income distributions of $1.5 per share, and capital gains distributions of $0.25 per share. Assuming that the fund carries no debt, and what is the rate of return on the fund?

7.76%

3.5%

8.26%

4.76%