A:
You currently own a mutual fund with a Net Asset Value (NAV) of $11.25, if in one month the NAV is $11.75 what is the change called?
a) Capital Gain
b) Capital Loss
c) Realized Appreciation
d) Unrealized Appreciation

The correct answer is d

In mutual funds, the NAV is the total value of the fund's portfolio less liabilities. The NAV is usually calculated on a daily basis.
If you owned the mutual fund and the NAV rose, but you didn't sell the fund, you would have an unrealized appreciation.

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