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Which of the Below Is the Equation for the Return V1V0+D1V0\frac{V_{1}-V_{0}+D_{1}}{V_{0}}

Question 49

Multiple Choice

Which of the below is the equation for the return on a portfolio where V₀ = the portfolio market value at the beginning of the interval, V₁ = the portfolio market value at the end of the interval, and D₁ = the cash distributions to the investor during the interval?


A) Rp = V1V0+D1V0\frac{V_{1}-V_{0}+D_{1}}{V_{0}}

B) Rp = V1+V0+D1V0\frac{V_{1}+V_{0}+D_{1}}{V_{0}}

C) Rp = V1V0D1V0\frac{V_{1}-V_{0}-D_{1}}{V_{0}}

D) Rp = (V₁ -V₀ + D₁) × V₀

Correct Answer:

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