Investors' Choice Fund had NAV per share of $37.25 on January 1, 2016.On December 31 of the same year, the fund's rate of return for the year was 17.3%.Income distributions were $1.14, and the fund had capital gain distributions of $1.35.Without considering taxes and transactions costs, what ending NAV would you calculate for Investors' Choice?

Question

Quizplus · Accepted Answer

The correct answer is A. The ending NAV would be $41.20. This is calculated by taking the beginning NAV of $37.25 and adding the rate of return of 17.3%, which gives us $43.69. We then subtract the income distributions of $1.14 and the capital gain distributions of $1.35, which gives us $41.20.

Investors' Choice Fund Had NAV Per Share of $37