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    Net Asset Value Pretax Rate of Return for ABC Fund

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    Company ABC Fund started the year with a NAV of $12.50.
    By the year-end, its NAV equals $12.10.
    The fund paid year-end distribution of income and capital gains of $1.50.
    What was the (pretax) rate of return to an investor in the fund?

    Please explain as well as show mathematically.
    Please support with two references.

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    https://brainmass.com/business/accounting/net-asset-value-pretax-rate-return-abc-fund-429474

    Solution Summary

    This solution discusses net asset value pretax rate of a return for a fund.

    $2.19

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