At the Beginning of the Year, You Invested $4,000 in a No-Load

question 91

Multiple Choice

At the beginning of the year, you invested $4,000 in a no-load mutual fund with a NAV of $20.00. At the end of the year, the fund distributed $1.06 in short-term earnings and $3.10 in long-term earnings. The end of year NAV was $19.42. What was your annual rate of return on this investment?

• A) -5.90
• B) -1.86 percent
• C) 11.80 percent
• D) 15.36 percent
• E) 17.90 percent

Distinguish between similar prepositions and use them correctly in sentences.

Apply knowledge of prepositions to understand historical information.

Relate the use of prepositions to specific facts in areas such as studies, innovations, and inventions.

Improve reading comprehension through the identification of correct prepositions in texts.

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Definitions:

Required Rate

The minimum return an investor expects to achieve on an investment.

Dividend Yield

A measurement comparing the yearly dividends issued by a business to its current market share price.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments, indicating how quickly the dividend payments have increased over a specific period of time.

Required Returns

The smallest yield an investor predicts to receive from investing in a particular venture or asset.