Investors' Choice Fund had NAV per share of $37.25 on January 1, 2018. 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

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The correct answer is A. The ending NAV can be calculated as follows:NAV per share on January 1, 2018 = $37.25Rate of return for the year = 17.3%Income distributions = $1.14Capital gain distributions = $1.35Ending NAV per share = $37.25 * (1 + 17.3%) + $1.14 + $1.35 = $41.20

Investors' Choice Fund Had NAV Per Share of $37