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%