Consider a no-load mutual fund with $270 million in assets and 15 million shares at the start of the year and with $320 million in assets and 16 million shares at the end of the year. During the year investors have received income distributions of $2 per share and capital gain distributions of $0.40 per share. Assuming that the fund carries no debt, and that the total expense ratio is 1%, what is the rate of return on the fund?

Multiple Choice

• 21.21%

• 23.33%

• 20.20%

• The answer cannot be determined from the information given.