A Mutual Fund Had NAV Per Share of $36

question 48

Multiple Choice

A mutual fund had NAV per share of $36.15 on January 1, 2012.On December 31 of the same year the fund's rate of return for the year was 14.0%.Income distributions were $1.16 and the fund had capital gain distributions of $2.12.Without considering taxes and transactions costs, what ending NAV would you calculate

• A)$37.93
• B)$34.52
• C)$44.69
• D)$47.25
• E)$36.28

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Definitions:

Overweighing

The tendency to give disproportionately heavy weight to a specific fact or piece of information when making decisions or assessments.

Negative Information

Data or feedback that reflects unfavorably on a person, situation, or entity, often resulting in adverse perceptions or outcomes.

Interviewer

An individual who conducts job interviews, typically asking questions to evaluate an applicant's suitability for a position.

Odds Ratio

A measure of association between an exposure and an outcome, indicating the odds of an outcome occurring with the exposure compared to without.