Answered step by step
Verified Expert Solution
Question
1 Approved Answer
To see how expenses can affect rate of return, consider a fund with $150 million in assets at the start of the year and with
To see how expenses can affect rate of return, consider a fund with $150 million in assets at the start of the year and with 5 million shares outstanding. The fund invests in a portfolio of stocks that provides no income but increases in value by 7%. The expense ratio, including 12b-1 fees, is 2%. What is the rate of return for an investor in the fund?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started