Respuesta :
Answer:
The total return in % terms is 7.5% while it is $0.75 in dollar terms
Explanation:
Total return =NAV1-NAV0+Dividends+Capital gains/NAV0
NAV1 is the closing NAV at $9.50
NAV0 is the opening NAV at $10
Dividends is $0.50
capital gains is $0.75
Total return=($9.50-$10.00+$0.50+$0.75)/$10.00
Total return is 7.50%
Total return in dollar terms =($9.50-$10.00+$0.50+$0.75)
=$0.75
The total return in % terms is 7.5% while it is $0.75 in dollar terms
The return is made of increase or decrease of NAV itself plus dividends and capital gains in share price.
Answer:
7.50% Is the total return
Explanation:
Given NAV beg = $10, D = $0.50, C = $0.75, NAV end=$9.50
To calculate Total return we take Ending NAV subtract beginning NAV and add any dividends and capital gains made during the period and then divide by beginning NAV
R = NAVend - NAVbeg +D+C/NAVbeg
=9.50 - 10 +0.50+0.75/10
=0.075/7.50%
