Given the following NAVPS in a Mutual Fund, compute the cumulative, 1 year and effective returns. Year NAVPS 0 1 2 3 4 5 2 2.52 3.024 3.4776 Cumulative 1 year ? ? ? ? 4.52088 ? 4.972968 ? ? ? ? ? الاله ? ? Effective Return ? ? ? ? ? ?

Essentials Of Investments
11th Edition
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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11. Given the following NAVPS in a Mutual Fund, compute the cumulative, 1 year and effective
returns.
Year
0
1
2
3
4
5
NAVPS
2
2.52
3.024
3.4776
Cumulative 1 year
?
?
?
?
4.52088 ?
4.972968?
?
?
?
?
?
?
Effective
Return
?
?
?
?
?
?
Transcribed Image Text:11. Given the following NAVPS in a Mutual Fund, compute the cumulative, 1 year and effective returns. Year 0 1 2 3 4 5 NAVPS 2 2.52 3.024 3.4776 Cumulative 1 year ? ? ? ? 4.52088 ? 4.972968? ? ? ? ? ? ? Effective Return ? ? ? ? ? ?
10. The information for Growth Fund A and Growth Fund B is given below:
Growth Fund A
End of Year
2014
2013
2012
Growth Fund B
End of Year
2014
2013
2012
Ending NAV
P45
40
38
Ending NAV
P50
42
40
Capital Gains Cash Dividend
Distribution
P1.25
1.50
1.10
Capital Gains Cash Dividend
Distribution
P3.00
2.50
1.75
Distribution
PO.25
0.15
0.10
Which fund had the higher rate of return in year 2014?
Distribution
PO.45
0.40
0.35
Transcribed Image Text:10. The information for Growth Fund A and Growth Fund B is given below: Growth Fund A End of Year 2014 2013 2012 Growth Fund B End of Year 2014 2013 2012 Ending NAV P45 40 38 Ending NAV P50 42 40 Capital Gains Cash Dividend Distribution P1.25 1.50 1.10 Capital Gains Cash Dividend Distribution P3.00 2.50 1.75 Distribution PO.25 0.15 0.10 Which fund had the higher rate of return in year 2014? Distribution PO.45 0.40 0.35
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