Question

zap fund is the mainstay of your portfolio. The investment company just announced its year end distributions. The long term capital gain per share is $4.60, and the dividend per share is $2.10. Assuming the NAV increased from $39.10 to $46.21, calculating your total annual return.

Answer 1

To calculate the total annual return, add the long-term capital gain and the dividend per share and divide by the beginning NAV, then multiply by 100 to get the percentage return.

Step-by-step explanation:

To calculate the total annual return, you need to consider both the long-term capital gain and the dividend per share.

Let's assume you own one share of the zap fund.

The long-term capital gain per share is $4.60 and the dividend per share is $2.10.

To calculate the total annual return, you add the long-term capital gain and the dividend per share together and then divide by the beginning net asset value (NAV) and multiply by 100 to get the percentage return.

In this case, the total annual return would be ((4.60 + 2.10) / 39.10) * 100 = 18.63%.

Answer 2

The solution for this problem is: