Problem 4-10 Mutual Fund Returns (L02, CFA2) You invested $60,000 in a mutual fu

Question

Problem 4-10 Mutual Fund Returns (L02, CFA2) You invested $60,000 in a mutual fund at the beginning of the year when the NAV was $56.21. At the end of the year, the fund paid $0.34 in short-term distributions and $0.51 in long-term distributions. If the NAV of the fund at the end of the year was $62.84, what was your return for the year? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Rate of return

Explanation / Answer

Return for the year is

Ending NAV value - Opening NAV value + short term distributions + long term distributions= 62.84- 56.21+ 0.34+ 0.51= 7.48$

Return = 7.48/56.21*100= 13.31

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