The Profitability Fund Had NAV Per Share of $17

question 48

Multiple Choice

The Profitability Fund had NAV per share of $17.50 on January 1, 2016. On December 31 of the same year, the fund's NAV was $19.47. Income distributions were $0.75, and the fund had capital gain distributions of $1.00. Without considering taxes and transactions costs, what rate of return did an investor receive on the Profitability Fund last year?

• A) 11.26%
• B) 15.54%
• C) 16.97%
• D) 21.26%
• E) 9.83%

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Definitions:

Insurable Interest

A requirement indicating that a person or entity must have a direct stake in the preservation of the insured item or person to legally purchase insurance on that item or person.

Simple Delivery Contract

An agreement where the delivery of a product is made immediately upon completion of the sale.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights concerning specific terms.

Risk Of Loss

The liability or potential for losing value or possession of goods, often considered in transactions and agreements.