A Mutual Fund Had NAV Per Share of $23

question 52

Multiple Choice

A mutual fund had NAV per share of $23.00 on January 1, 2012.On December 31 of the same year the fund's NAV was $23.15.Income distributions were $0.63 and the fund had capital gain distributions of $1.26.Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year

• A)11.26%
• B)10.54%
• C)8.87%
• D)8.26%
• E)9.63%

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Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries, used to control trade.

Restrictions

Rules or limitations placed on activities, movements, or trade to control or regulate actions.

World Price

The international market price at which goods are traded between countries; it plays a crucial role in determining local prices and trade policies.

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Goods or services sent from one country to another for sale or trade.