Question

An investor buys Go-Go Mutual Fund on January 1 at a net asset value of $21.20. At the end of the year, the price is $25.40. Also, the investor receives $0.50 in dividends and $0.35 in capital gains distributions. What is the total percent return on the beginning net asset value

Answer 1

Answer: 23.82%

Step-by-step explanation:

First we will begin by calculating the difference in the Opening and Closing Net Asset Values.

= 25.40 - 21.20

= $4. 20

Then you add the various gains received which include Dividends and Capital Gains

= 4.20 + 0.50 + 0.35

= $5.05

This is the total Gain

We will then divide by the Opening NAV to find the percent return

= 5.05 / 21.20

= 0.2382

= 23.82 %

23.82% is the total percent return on the beginning net asset value.