Zippo Mutual Fund is one of your best performers.It just announced a year-end distribution of $2.50 per share in capital gains and $4.25 in dividends.Assuming the NAV increased from $31.50 to $43.75,calculate your total annual return.
A)60.32%
B)46.87%
C)26.95%
D)24.53%

Question

Quizplus · Accepted Answer

The total annual return is calculated by adding the capital gains and dividends to the increase in NAV, then dividing by the initial NAV. The increase in NAV is $43.75 - $31.50 = $12.25. Adding the distribution, the total gain is $12.25 + $2.50 + $4.25 = $19.00. The total return percentage is ($19.00 / $31.50) * 100 = 60.32%.

Zippo Mutual Fund Is One of Your Best Performers