A Mutual Fund Had NAV Per Share of $36

question 53

Multiple Choice

A mutual fund had NAV per share of $36.15 on January 1, 2016.On December 31 of the same year, the fund's rate of return for the year was 14.0%.Income distributions were $1.16, and the fund had capital gain distributions of $2.12.Without considering taxes and transactions costs, what ending NAV would you calculate?

• A)$37.93
• B)$34.52
• C)$44.69
• D)$47.25

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Definitions:

Inelastic

Describes a situation where the demand for a good or service is relatively unresponsive to changes in its price.

Market Power

Market power is the ability of a firm or a group of firms to raise and maintain prices at above-normal levels, influencing the terms and conditions of a particular market.

Elastic

Describes how the amount of a good that is demanded or supplied changes in reaction to a price adjustment.

Imperfectly Competitive

Describes markets where individual sellers have some control over the price of their products, unlike in perfect competition.