Assume That You Purchased Shares of a Mutual Fund at a Net

question 61

Multiple Choice

Assume that you purchased shares of a mutual fund at a net asset value of $14.50 per share. During the year, you received dividend income distributions of $0.27 per share and capital gains distributions of $0.65 per share. At the end of the year, the shares had a net asset value of $13.74 per share. What was your rate of return on this investment?

• A) 2.91%
• B) 3.07%
• C) 1.10%
• D) 1.78%
• E) −1.18%

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Definitions:

Schema

A mental structure or idea that assists in arranging and understanding information from our surroundings.

Self-fulfilling Prophecy

A belief or expectation that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.

Self-fulfilling Prophecies

A prediction that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.

Classroom Performance

The evaluation of a student's academic work in a classroom setting, often encompassing both participation and achievement in coursework.