Clark purchased 227 shares of a mutual fund with an offering price and NAV of $35.03 per share a year ago. Today, the NAV is $33.52 per share and the fund has just distributed $3.23 per share in long- term gains. What is Clark's rate of return? A. -4.31% B. 4.91% C. 5.13% D. 13.53% E. 14.29%

Clark purchased 227 shares of a mutual fund with an offering price and NAV of $35.03 per share a year ago. Today, the NAV is $33.52 per share and the fund has just distributed $3.23 per share in long- term gains. What is Clark's rate of return? A. -4.31% B. 4.91% C. 5.13% D. 13.53% E. 14.29%

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 7FPE

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Question

What is Clark's rate of return?

Clark purchased 227 shares of a mutual fund with an offering price
and NAV of $35.03 per share a year ago. Today, the NAV is $33.52
per share and the fund has just distributed $3.23 per share in long-
term gains.
What is Clark's rate of return?
A. -4.31%
B. 4.91%
C. 5.13%
D. 13.53%
E. 14.29%

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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What is Clark's rate of return? General accounting
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Please step by step solutions
Subject:- finance
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