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CFA Level 1
Portfolio Management

Calculation of Fund Return based on Cash Flows

Hard Performance Evaluation Return Calculation

ABC Fund is a mutual fund that reported the following cash flows over the past year:
At the beginning of the year, the Net Asset Value (NAV) was $100 million with 1 million units outstanding.

During the year, the fund distributed dividend payments totaling $2 million, while the ending NAV increased to $110 million. Calculate the return of the fund based on these cash flows.

Hint

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