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a. An investor purchases shares in a no load mutual fund for its net asset value of $26 and during the year receives cash distributions of $1. After one year the investor redeems the shares for $32. What is the percentage return on the investment?
a. and
b. The net asset value of shares in a closed-end investment company is $26. An investor buys the shares for $23 in the secondary market. During the year the company distributes $1. After one year, the net asset rises to $32, and the investor sells the shares for $34 in the secondary market. What is the percentage return on the investment?
b., the net asset value rises from $26 to $32 and the company distributed $1. Why are the percentage returns different?
c. In both
Net Profit
The financial gain achieved after subtracting all expenses, taxes, and costs from total revenue.
Net Income
The total earnings of a company after subtracting all expenses, taxes, and costs, indicating the company's profitability.
Depreciation
The accounting process of allocating the cost of tangible assets over their useful lives, reflecting wear and tear or obsolescence.
Inventory
A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold.
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