Consider a mutual fund with OMR400 million in assets at the start of the year and with 20 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of OMR4 million. The stocks included in the portfolio increases in price by 10%, but no securities are sold and there are no capital gain distributions. The fund charges fees of 3%, which are deducted from the portfolio assets at year end. What is the net asset value at the start and end of the year? What is the rate of return for an investor in the fund?
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