Finra Series-6 Exam - Topic 9 Question 19 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 19
Topic #: 9

Doc purchased shares of the MedTech Fund at its net asset value of $9.66 a share at the beginning of the year. The fund distributed dividends of $0.12 a share and capital gains of $0.10 a share during the year.

The net asset value at the end of the year was $12.00. The fund's total return was:

A21.3%.

B26.5%.

C25.5%.

D10.1%.

Show Suggested Answer

Suggested Answer: B

The fund's beginning NAV was $9.66, its ending NAV was $12.00, and its distributions during the year totaled $0.22 a share, so the total return on the MedTech Fund over this period was 26.5%. Total return can be calculated as:

[(ending NAV + distributions) - beginning NAV]/beginning NAV = [($12.00 + $0.22) -$9.66]/$9.66 = 26.5%.

by Annabelle at May 05, 2022, 11:05 AM

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Salome

7 months ago

It’s definitely not 10.1%, that’s way too low!

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Shayne

7 months ago

Gotta love those dividends!

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Callie

7 months ago

Wait, how did they calculate that? Seems off.

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Johnna

7 months ago

I think it’s around 26.5% based on the numbers.

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Tamesha

8 months ago

Total return includes dividends and capital gains!

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Von

8 months ago

If I remember correctly, total return includes both the income from dividends and the appreciation in value. I think it might be around 21.3%, but I need to double-check my calculations.

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Lynelle

8 months ago

I feel like I might be overthinking this. The net asset value increased significantly, but I can't recall the exact formula for total return.

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My

8 months ago

I think the total return is calculated by adding the dividends and capital gains to the change in net asset value, but I'm not entirely sure how to do that correctly.

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Cassie

8 months ago

I remember a similar question where we had to calculate total return, and I think it was about finding the percentage increase from the initial value. Could it be 26.5%?

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Edelmira

8 months ago

Okay, let me think this through. The director wants the journey mapping sessions to be tailored to the current Salesforce environment, so the BA would need to know the organization's edition and license type, right?

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Stephen

8 months ago

This question seems straightforward. The blockchain and IoT are both about connectivity, so the answer is likely D - increase device connectivity.

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Alayna

8 months ago

I'm a bit unsure, but I think the audit objectives and scope are essential parts of the report, so they might be required.

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