An Equity Mutual Fund Began the Year with a Net

question 8

Essay

An equity mutual fund began the year with a net asset value (NAV) of $6.50 per share. During the year, it received $0.15 of dividend income, $1.25 in realized capital losses, and $0.50 in unrealized capital gains. Ninety percent of the income was distributed to shareholders. Calculate the fund's year-end NAV.

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Definitions:

Stress Response

The body's reaction to any change that requires an adjustment or response.

Biochemical Changes

Alterations at the molecular level within organisms, often as a response to environmental factors or internal processes.

Limited Capacity

A theory that humans have a finite amount of cognitive resources available at any given time.

Positive Thinking

The practice of focusing on good and positive thoughts to achieve a desired outcome or to cope with negative situations.