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:

Assignable Variation

Variation in a process that can be traced to a specific cause, as opposed to random or inherent variation.

Specific Events

Particular occurrences or happenings that are distinct and defined within a certain context or set of conditions.

Control Limits

Statistical boundaries set in process control charts that indicate the acceptable range of process performance and help identify moments of significant deviation or trend.

Standard Errors

Measures of the variability or spread of a sample statistic distribution if the experiment were to be repeated many times.