Information for ABC Fund is The market-based holding period return for ABC Mutual Fund is

Question

Information for ABC Fund is  The market-based holding period return for ABC Mutual Fund is

Quizplus · Accepted Answer

The market-based holding period return can be calculated as the change in the market value of the fund's assets during the holding period plus any distributions paid out, all divided by the beginning market value of the fund's assets. Unfortunately, we do not have access to the necessary information to calculate this return so we must make an educated guess based on the answer choices given. A return of -19.1% seems overly negative and unlikely, while a return of 9.4% seems overly positive and equally unlikely. A return of 0.3% seems too low for a holding period return. Therefore, the most likely choice is B, -14.6%.

Information for ABC Fund Is the Market-Based Holding Period