Assume That You Purchased Shares of High Flying Mutual Fund

question 65

Multiple Choice

Assume that you purchased shares of High Flying mutual fund at a net asset value of $12.50 per share. During the year, you received dividend income distributions of $0.78 per share and capital gains distributions of $1.67 per share. At the end of the year, the shares had a net asset value of $13.87 per share. What was your rate of return on this investment?

• A) 29.43%
• B) 30.56%
• C) 31.19%
• D) 32.44%
• E) 29.18%

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Definitions:

Fiduciary Duty

An obligation to act in the best interest of another party, such as a trustee's duty towards beneficiaries.

Closely Held

A description for a corporation or company that has a small number of shareholders, often characterized by its shares not being widely available to the public.

Fiduciary Duty

A legal obligation requiring one party to act solely in another party's interest with a high standard of care, especially in matters concerning trust and confidence.

Office Equipment

Items and machinery used in an office to assist in tasks and operations, such as computers, printers, and furniture.