Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year? A) 11.26% B) 10.54% C) 7.97% D) 8.26% E) 9.63% Answer: E Difficulty: Moderate Rationale: R = ($19.14 – 19.00 + .57 + 1.12) / $19.00 = 9.63% 38. A mutual fund had NAV per share of $26.25 on January 1, 2003. On December 31 of the same year the fund”s rate of return for the year was 16.4%. Income distributions were $1.27 and the fund had capital gain distributions of $1.85. Without considering taxes and transactions costs, what ending NAV would you calculate? A) $27.44 B) $33.88 C) $24.69 D) $42.03 E) $16.62 Answer: A Difficulty: Moderate Rationale: .164 = (P – $26.25 + 1.27 + 1.85) / $26.25; P = $27.435 39. A mutual fund had NAV per share of $16.75 on January 1, 2003. On December 31 of the same year the fund”s rate of return for the year was 26.6%. Income distributions were $1.79 and the fund had capital gain distributions of $2.80. Without considering taxes and tran