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

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Definitions:

Visible Waves

Electromagnetic waves that are visible to the human eye, essentially the spectrum of light that people can see.

Eardrum

A delicate layer that isolates the outer ear from the middle ear, responding with vibrations to audio waves.

Sensitivity

The ability of a test or measurement to accurately identify the presence of a particular condition, disease, or characteristic.

Temperatures

Measures of the degree of hotness or coldness of a body or environment, typically expressed in degrees Celsius or Fahrenheit.