单选题 Details of Net Asset Values of three funds: NAV as on Dec 31, 2008 NAV as on Dec 31, 2007 Fund A $12 $10 Fund B $55 $50 Fund C $50 $55 The Fund that had the best performance during 2008 was: A. Fund A. B. Fund B. C. Cannot be determined from the above information.

【正确答案】 C

【答案解析】The NAV is not an indication of the performance of a Fund. While it is useful to track daily movements in value, its value is reduced by the distributions ( if any) made during the period. While the NAV has appreciated by 20% for Fund A and 10% for Fund B, and declined by about 9% for Fund C, the closing NAV is after dividends and other distributions made during 2008. It is very well possible that Fund C (whose NAV actually declined) could have been the best performer. We need to additionally know the distributions made during the year to judge the performance of the Funds.