Assume That You Purchased Shares of High Flying Mutual Fund

question 24

Multiple Choice

Assume that you purchased shares of High Flying mutual fund at a net asset value of $12.50 per share.During the year, you received dividend income distributions of $0.78 per share and capital gains distributions of $1.67 per share.At the end of the year, the shares had a net asset value of $13.87 per share.What was your rate of return on this investment?

• A)29.43%
• B)30.56%
• C)31.19%
• D)32.44%

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Definitions:

Mutual Funds

Investment vehicles made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, and other assets.

Gross Earnings

The total income earned by an individual or company before any deductions or taxes are taken out.

Provincial Utility

A utility company or service, like electricity or water, that is operated at the provincial or state level rather than locally or nationally.

Biweekly

Occurring every two weeks.