CMA Final · Strategic Financial Management · Mutual Funds
An open-ended equity scheme began the year with NAV Rs 40.00. During the year it paid a dividend of Rs 3.00 per unit when NAV was Rs 44.00, and the dividend was not reinvested. Year-end NAV was Rs 46.00. What is the absolute return for the year (dividend added, no reinvestment)?
Not reliable as written.
- A15.00%
- B17.50%Correct
- C12.50%
- D20.00%
Explanation
Return = (46 - 40 + 3) / 40 = 9/40 = 22.5%? Check: 46-40 = 6; 6+3 = 9; 9/40 = 22.5%. Note NAV already is post-dividend, so the correct figure is 22.5%.
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