Doc purchased shares of the MedTech Fund at its net asset value of $9.66 a share at the beginning of the year. The fund distributed dividends of $0.12 a share and capital gains of $0.10 a share during the year. The net asset value at the end of the year was $12.00. The fund's total return was:

Question

Quizplus · Accepted Answer

The fund's beginning NAV was $9.66, its ending NAV was $12.00, and its distributions during the year totaled $0.22 a share, so the total return on the MedTech Fund over this period was 26.5%. Total return can be calculated as:
[(ending NAV + distributions) - beginning NAV]/beginning NAV =
[($12.00 + $0.22) - $9.66]/$9.66 = 26.5%.

Doc Purchased Shares of the MedTech Fund at Its Net