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:

Securities Act

A law enacted to regulate the securities industry, ensuring transparency, fairness, and protection of investors by requiring full disclosure of financial information from companies offering securities for public sale.

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Prospectus

An official document that provides detailed information about an investment, typically issued by companies in the process of going public.

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