Practice Quiz

FINRA Series 6

Category - Series 6

Start a Study Session Sign up for Question of the Day
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:
  1. 21.3%.
  2. 26.5%.
  3. 25.5%.
  4. 10.1%.
Explanation
Answer: B - 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%.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz