Question

Here is the per-share performance record of the Abacus Growth-and-Income fund for 2017 and 2016: 2017 2016 1. Net asset value, beginning of period: $75.73 $70.00 2. Income from investment operations: 3. Net investment income $ 1.51 $ 1.26 4. Net gains on securities (realized and unrealized) 9.84 11.20 5. Total income from investment operations $11.35 $12.46 6. Less distributions: 7. Dividends from net investment income ($0.68) ($0.57) 8. Distributions from realized gains (5.41) (6.16) 9. Total distributions (6.09) (6.73) 10. Net asset value, end of period: $80.99 $75.73 Use this information to find the rate of return earned on this fund in 2016 and in 2017. Round the answers to two decimal places. Do not round intermediate calculations.

Answer #1

Yeae 2017 | Year 2016 | ||

N.A.V. Beginning | 75.73 | 70 | |

Dividend from Net investment income | 0.68 | 0.57 | |

Distributions from realized gains | 6.09 | 6.73 | |

N.A.V. at End | 80.99 | 75.73 | |

Dividend are part of income distributed to Mutual fund holder. | |||

Distributions are allocation of gains to mutual fund holders. | |||

Dividend and Distributions both are sum received by mutual fund unit holders. | |||

So, Rate of return earned = | |||

Rate of return formula = (Dividend + Distribution received+(NAV at closing - NAV at opening) / NAV at opening | |||

Rate of return | 0.158854 | 0.186143 | |

15.89% | 18.61% | ||

So, Rate of return during 2017 is 15.89% and 2016 is 18.61% |

Chapter 13 Financial Planning Exercise 11 Calculating and
evaluating mutual fund returns Here is the per-share performance
record of the Abacus Growth-and-Income fund for 2017 and 2016: 2017
2016 1. Net asset value, beginning of period: $75.73 $70.00 2.
Income from investment operations: 3. Net investment income $ 1.51
$ 1.26 4. Net gains on securities (realized and unrealized) 9.84
11.20 5. Total income from investment operations $11.35 $12.46 6.
Less distributions: 7. Dividends from net investment income ($0.68)
($0.57)...

Chapter 13
Financial Planning Exercise 11
Calculating and evaluating mutual fund returns
Here is the per-share performance record of the Abacus
Growth-and-Income fund for 2017 and 2016:
2017
2016
1. Net asset value, beginning of period:
$54.65
$50.00
2. Income from investment operations:
3. Net investment income
$ 1.04
$ 0.70
4. Net gains on securities (realized and unrealized)
10.38
9.50
5. Total income from investment operations
$11.42
$10.20
6. Less distributions:
7. Dividends from net investment income
($0.47)
($0.32)...

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...

1. The U.S. income tax was enacted by the _____ amendment to the
Constitution.
a.16th
b.18th
c.2nd
d.13th
2. Tax law is a tool used by government to:
a.Raise revenue to run government
b.Support research and development
c.Further economic goals
d.Encourage social objectives
e.All of these choices are correct.
3. Entities required to report income to the IRS are:
a.Partnerships
b.Estates
c.Trusts
d.Corporations
e.All of these choices are correct.
4. What is reported on Schedule A of Form 1040?
a.Itemized...

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