Consider a Hedge Fund with $400 Million in Assets, $60

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%

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