At the Beginning of the Year, You Invested $7,500 in a No-Load

question 63

Multiple Choice

At the beginning of the year, you invested $7,500 in a no-load mutual fund with an NAV of $30.00. At the end of the year, the fund distributed $1.05 per share in short-term earnings and $3.00 per share in long-term earnings. The end-of-year NAV was $24.75. What was your annual rate of return on this investment?

• A)−4.00%
• B)−1.96%
• C)10.80%
• D)14.20%
• E)16.90%

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Definitions:

Equity Courts

Courts that have jurisdiction over cases involving remedies other than monetary rewards, such as injunctions or specific performance, based on fairness.

Injunction

An equitable remedy whereby the defendant is ordered to perform certain acts or to desist from certain acts.

Natural Law

A body of allegedly existing ethical rules or principles that is morally superior to positive law and that prevails over positive law in case of a clash between it and the natural law.

Law and Morality

The relationship and interaction between legal principles and moral ethics, examining how legal systems align or conflict with societal moral standards.