At the Beginning of the Year,you Invested $5,000 in a No-Load

question 31

Multiple Choice

At the beginning of the year,you invested $5,000 in a no-load mutual fund with a NAV of $25.00.At the end of the year,the fund distributed $1.10 per share in short-term earnings and $3.10 per share in long-term earnings.The end of year NAV was $24.60.What was your annual rate of return on this investment?

• A) -5.90 percent
• B) -1.86 percent
• C) 11.80 percent
• D) 15.20 percent
• E) 17.90 percent

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Definitions:

Panel

A methodological approach in research or a group discussion format that involves a selected group of people who share their perspectives or insights on a specific topic.

Monopolistically Competitive Firms

Companies that operate in a market structure characterized by many competitors, but each one sells a slightly differentiated product.

Economic Profits

The contrast between aggregate sales and cumulative expenditures, including both disclosed and undeclared costs.

Long Run

A period during which all factors of production and costs can be varied, without any fixed factors or constraints.