A Mutual Fund Has a NAV of $46

question 113

Multiple Choice

A mutual fund has a NAV of $46.20 at the beginning of the year. The fund distributes a dividend of $0.32 and a capital gain of $0.87 at the end of the year. If you purchased 2,000 shares at the beginning of the year and the end of year NAV was $49.10, what was your return for the year?

• A) 6.97%
• B) 8.85%
• C) 8.16%
• D) 6.28%
• E) 8.34%

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Definitions:

Cannon-Bard Theory

A theory in psychology that suggests emotions and bodily reactions occur simultaneously, rather than one causing the other.

Biological Changes

The physical and biochemical alterations that occur in organisms as a result of genetic, environmental, or evolutionary processes.

Emotion

A complex psychological state involving an individual's state of mind, physiological responses, and expressive behaviors.

James-Lange Theory

The James-Lange Theory posits that emotional experiences result from the perception of physiological responses to stimuli, suggesting that we feel emotion because we perceive our body's reactions.