Question

A mutual fund had NAV per share of $37.12 on January 1, 2016. On December 31 of the same year, the fund's rate of return for the year was 11.0%. Income distributions were $0.1, and the fund had capital gain distributions of $3.9. Without considering taxes and transactions costs, the ending NAV is closest to Select one:

a. $37.93

b. $34.52

c. $37.30

d. $47.25

e. $36.28

Assume that you purchased shares of a mutual fund at a net asset value of $14.45 per share. During the year, you received dividend income distributions of $0.24 per share and capital gains distributions of $0.63 per share. At the end of the year, the shares had a net asset value of $13.76 per share. Your rate of return on this investment is closest to

Select one:

a. 2.91%

b. 3.07%

c. 1.10%

d. 1.78%

e. 1.18%

Answer 1