The Holding Period Return for Mutual Funds Should Be Based

question 19

Multiple Choice

The holding period return for mutual funds should be based on

• A) net asset value exclusively.
• B) dividend income exclusively.
• C) capital gains distributions exclusively.
• D) capital gains distributions, dividends and change in net asset value.

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Definitions:

Redistribution Income

The transfer of income and wealth from some individuals to others through a social mechanism such as taxation, charity, welfare, public services, or land reform.

Rent-seeking Activity

Actions by individuals or firms to increase their own wealth without creating new wealth or value for society.

Taxing

The act of imposing charges on individuals or entities by the government in order to finance public spending and services.

Benefits

The advantages or positive outcomes that accrue from actions, activities, or projects, often used in evaluating decisions.