Assume that you purchased shares of High Flying mutual fund at a net asset value of $12.50 per share. During the year, you received dividend income distributions of $0.78 per share and capital gains distributions of $1.67 per share. At the end of the year, the shares had a net asset value of $13.87 per share. What was your rate of return on this investment?

Question

Quizplus · Accepted Answer

The rate of return is calculated as: [(Ending NAV - Beginning NAV + Dividends + Capital Gains) / Beginning NAV] * 100. Substituting the given values: [(13.87 - 12.50 + 0.78 + 1.67) / 12.50] * 100 = 30.56%.

Assume That You Purchased Shares of High Flying Mutual Fund