Information for ABC Fund Is The Market-Based Holding Period Return for ABC Mutual Fund Is

question 35

Multiple Choice

Information for ABC Fund is $$\begin{array} { l c c } & \text { Beginning of the Year } & \text { End of the Year } \\\hline \text { NAV } & \$ 12.80 & \$ 11.64 \\\text { Market price of the fund shares } & \$ 13.05 & \$ 9.95 \\\text { Dividends paid over the year } & & \$ 0.90 \\\text { Capital gains distributed over the year } & & \$ 0.30 \\\hline\end{array}$$ The market-based holding period return for ABC Mutual Fund is

• A) -19.1%.
• B) -14.6%.
• C) 0.3%.
• D) 9.4%.

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Definitions:

MR = MC

A condition in economics where the marginal revenue (MR) of producing one more unit of a good matches the marginal cost (MC) of producing that unit, used in determining the optimum production quantity.

Profit-maximizing Level

The point of production at which a firm achieves its highest possible profit, determined by equating marginal cost and marginal revenue.

Perfectly Elastic

Perfectly elastic describes a situation where the quantity demanded or supplied changes infinitely in response to any change in price, represented by a horizontal demand or supply curve.

Industry Supply

The total output of a specific good or service produced by all firms in an industry at various price levels.