In early January of 2020, Abigail invested $2,500 in shares of the Pathfinder Fund when the NAV was $11.12. All dividends and capital gains are reinvested in the fund. At the end of December, 2020 the NAV was $11.50 and she held 235.8 shares in her account. Her holding period return was

Question

Quizplus · Accepted Answer

The holding period return (HPR) can be calculated by finding the total value at the end and comparing it to the initial investment. Initially, Abigail invested $2,500. By the end of December 2020, she had 235.8 shares valued at $11.50 each, making her investment worth 235.8 * $11.50 = $2,711.70. The HPR is then calculated as (End Value - Initial Investment) / Initial Investment * 100 = ($2,711.70 - $2,500) / $2,500 * 100 = 8.47%.

In Early January of 2020, Abigail Invested $2,500 in Shares