Practice Quiz

FINRA Series 6

Category - Series 6

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The total return reported by a mutual fund:
  1. is calculated as the percentage change in the net asset value of the fund.
  2. is equal to the return it earned on the dividend and interest income it received from its investments.
  3. is equal to the annual percentage increase in the dollars invested in the fund by investors.
  4. includes both the dividend and interest income earned by the fund and any increase in the fund’s net asset value.
Explanation
Answer: D - The total return reported by a mutual fund includes both the dividend and interest income earned by the fund and any increase in the fund’s net asset value. It includes both the return on dividends and interest income and the return due to the capital appreciation of the fund’s value.
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