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2 January, 21:19

Last year at this time, a mutual fund had an NAV of $13.20 per share. Over the past year the fund paid dividends of $0.70 per share and had a capital gains distribution of $1.20 per share. What is the holding period return assuming that the current NAV is $14.42

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  1. 2 January, 21:46
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    HPR = 23.64%

    Explanation:

    The one period rate of return can be calculated as the change in per unit net assets value plus per unit capital gains and per unit capital gains

    HPR = D + (NAVend - NAVbeg) + C / NAV beg

    Given NAVbeg = $13.20, D = $0.7, NAVend = $14.42 C = $1.20

    HPR = 0.7 + (14.42-13.20) + 1.20/13.20

    =0.2364/23.64%
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