What is the rate of return on the fund

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Reference no: EM13789496

Consider a hedge fund with $400 million in assets, $60 million in debt, and 16 million shares at the start of the year and with $500 million in assets, $40 million in debt, and 20 million shares at the end of the year. During the year, investors have received an income dividend of $.75 per share. Assuming that the total expense ratio is 2.75%, what is the rate of return on the fund?

a. 6.45%

b. 8.52%

c. 8.95%

d. 9.46%

Reference no: EM13789496

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