In January, 1991, the NAV for a fund was $12. Over the year, the fund paid dividends of $.48 and made a capital gain distribution of $1.06. At the end of the year, the NAV was $11.50. For the year, the rate of return was

Question

Quizplus · Accepted Answer

The question provides us with the NAV in January and December, but not the NAV for the entire year. Therefore, we cannot calculate the rate of return using just these two values. We are only given the rate of return for the year, which must have been calculated using some other method (perhaps monthly NAVs or dividend payments). With the information given, we can only rely on the provided answer choice, which is D.

In January, 1991, the NAV for a Fund Was $12