What Is the Average Annual Compound Rate of Return for a Fund

question 34

Multiple Choice

What is the average annual compound rate of return for a fund with the following values? $$\begin{array} { l r } \text { Fund price, beginning of year 1 } & \$ 19.32 \\\text { Fund price, end of year 3 } & \$ 21.22 \\\text { Annual distribution, year 1 } & \$ 1.34 \\\text { Annual distribution, year 2 } & \$ 1.86 \\\text { Annual distribution, year 3 } & \$ 1.14 \\\hline\end{array}$$

• A) 10.5%
• B) 10.8%
• C) 25.6%
• D) 32.3%

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Definitions:

Environmental Influence

Factors external to the individual, such as social, cultural, and physical environments, that impact behaviors, attitudes, and development.

Intelligence

The ability to acquire knowledge, think abstractly, understand complex ideas, learn from experience, adapt to new situations, and solve problems.

Cultural Disadvantages

Situations where certain populations or individuals face social, economic, or educational challenges due to cultural background or perceptions.

Ethnic Differences

Variations in practices, values, and physical or genetic traits among groups of people categorized based on common ancestry or culture.