An Equity Mutual Fund Began the Year with a Net

question 8

Essay

An equity mutual fund began the year with a net asset value (NAV) of $6.50 per share. During the year, it received $0.15 of dividend income, $1.25 in realized capital losses, and $0.50 in unrealized capital gains. Ninety percent of the income was distributed to shareholders. Calculate the fund's year-end NAV.

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Definitions:

Glutamate Agonists

Substances that mimic the action of glutamate, a major excitatory neurotransmitter in the brain, and can therefore enhance its activity.

Glutamate

An important neurotransmitter in the nervous system involved in memory, learning, and the regulation of the brain's excitatory signals.

Neurotoxin

A neurotoxin is a toxic substance that disrupts the normal function of nerve cells, potentially causing damage to the nervous system and leading to neurological symptoms or disorders.

Disinhibition Theory

Explanation holding that alcohol has a selective depressant effect on the brain’s frontal cortex, which controls judgment, while sparing subcortical structures responsible for more instinctual behaviors, such as desire.