Last year at this time, a mutual fund had an NAV of $52.80 per share. Over the past year the fund paid dividends of $2.80 per share and had a capital gains distribution of $2.40 per share. What is the holding period return assuming that the current NAV is $57.68?

Question

Quizplus · Accepted Answer

The holding period return (HPR) can be calculated by adding the dividends and capital gains distribution to the current NAV, subtracting the original NAV, and then dividing by the original NAV. Here, HPR = (($57.68 + $2.80 + $2.40) - $52.80) / $52.80 = $10.08 / $52.80 = 0.191 or 19.1%.

Last Year at This Time, a Mutual Fund Had an NAV