Consider a no-load mutual fund with $600 million in assets and 25 million shares at the start of the year and with $650 million in assets and 26 million shares at the end of the year. During the year investors have received income distributions of $4 per share and capital gain distributions of $0.30 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

The answer cannot be determined from the information given.

25.05%

20.40%

21.04%