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NEW QUESTION: 1
Doc purchased shares of the MedTech Fund at its net asset value of $9.66 a share at the beginning of the year. The fund distributed dividends of $0.12 a share and capital gains of $0.10 a share during the year.
The net asset value at the end of the year was $12.00. The fund's total return was:
A. 21.3%.
B. 25.5%.
C. 10.1%.
D. 26.5%.
Answer: D
Explanation:
Explanation/Reference:
Explanation: The fund's beginning NAV was $9.66, its ending NAV was $12.00, and its distributions during the year totaled $0.22 a share, so the total return on the MedTech Fund over this period was 26.5%. Total return can be calculated as:
[(ending NAV + distributions) - beginning NAV]/beginning NAV = [($12.00 + $0.22) -$9.66]/$9.66 = 26.5%.
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