Which of the Below Is the Equation for the Return $\frac{V_{1}-V_{0}+D_{1}}{V_{0}}$

question 49

Multiple Choice

Which of the below is the equation for the return on a portfolio where V₀ = the portfolio market value at the beginning of the interval, V₁ = the portfolio market value at the end of the interval, and D₁ = the cash distributions to the investor during the interval?

• A) Rp = \(\frac{V_{1}-V_{0}+D_{1}}{V_{0}}\)
• B) Rp = \(\frac{V_{1}+V_{0}+D_{1}}{V_{0}}\)
• C) Rp = \(\frac{V_{1}-V_{0}-D_{1}}{V_{0}}\)
• D) Rp = (V₁ -V₀ + D₁) × V₀

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