A Mutual Fund Had NAV Per Share of $23

question 37

Multiple Choice

A mutual fund had NAV per share of $23.00 on January 1, 2018. On December 31 of the same year, the fund's NAV was $23.15. Income distributions were $0.63, and the fund had capital gain distributions of $1.26. Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year?

• A) 11.26%
• B) 10.54%
• C) 8.87%
• D) 8.26%
• E) 9.63%

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Definitions:

Quarterly Data

Information or statistics collected at three-month intervals, often used in business and finance to track performance and trends.

Seasonal Components

Patterns within time series data that occur regularly at specific intervals, such as daily, weekly, monthly, or annually, influenced by seasonal factors.

Moving Averages

A statistical method used to analyze data points by creating series of averages of different subsets of the full data set.

Exponential Smoothing

A time series forecasting method for univariate data that applies decreasing weights to past observations, with the most weight given to the latest data.