A mutual fund has $50 million in assets at the beginning of the year and 1 million shares outstanding throughout the year. Throughout the year assets grow at 12%. The fund imposes a 12b-1 fee on all shares equal to 1%. The fee is imposed on year-end asset values. If there are no distributions, what is the end-of-year NAV for the fund?

A) $50
B) $55.44
C) $56.12
D) $54.55

12b-1 Fee

A fee charged by mutual funds to cover distribution and marketing expenses, included in the fund's expense ratio and paid by its shareholders.

NAV

Net Asset Value, the total value of all the securities in an investment portfolio minus any liabilities, divided by the number of shares outstanding.

Asset Growth

The increase in the value of a company's assets over time, which can be due to investment returns or contributions.