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:

Entry Fee

An initial charge required to gain access to a service, event, or establishment.

Tying

Practice of requiring a customer to purchase one good in order to purchase another.

Price Discrimination

The strategy of selling the same product at different prices to different groups of buyers, often based on their willingness to pay.

Market Power

The ability of a company or entity to influence the price and production levels in a market.