a) The following information relates to open-end Mutual Fund A:

	Value on 1/1/2019	Value on 31/12/2019
Total Assets	$200 million	$288 million
Total Liabilities	$100 million	$120 million
No. of shares outstanding	40 million	60 million

Interim dividends paid per share	$0.15
Front-end load	4%
12b-1 fees	0.8%
Expenses ratio	0.5%

Calculate the rate of return to an investor in the fund during the year, assuming all 12b-1 fees and fund expenses were paid before year-end. (5 marks)

b) Fund B is closed-end fund and has the same NAVs as Mutual Fund A on 1/1/2019 and 31/12/2019. At the beginning of the year, the fund was selling at a 2% discount to NAV. By the end of the year, the fund is selling at 3% premium to NAV. Brokerage commission and expenses ratio are 1.5% of sales proceeds. No interim dividends were declared.