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:

Conscious Rehearsal

The intentional practice or repetition of information in one's mind to facilitate memorization.

Implicit Memory

Refers to memories that are recalled unconsciously and effortlessly, influencing thoughts and behaviors without our awareness.

Mourning War

Indigenous North American warfare practices where raids were conducted to avenge the death of a tribe member or to capture members from other tribes in order to replace the deceased, thus maintaining social stability within the tribe.