Allen Fund had NAV values of $9,$10,and $12 at the beginning,middle,and end of last year,respectively.It made a $1.00 per share distribution at mid-year.The average annual total return of the fund for the year is
A)33.33%.
B)44.44%.
C)46.67%.
D)55.55%.

Question

Quizplus · Accepted Answer

To calculate the average annual total return, we need to use the formula:

AATR = [(Ending NAV + Distributions - Beginning NAV) / Beginning NAV] * 100

Plugging in the values, we get:

AATR = [(12 + 1 - 9) / 9] * 100 
AATR = 44.44%

Therefore, the answer is (C), 46.67%.

Allen Fund Had NAV Values of $9,$10,and $12 at the Beginning,middle,and