Question 9 of 13
What term is used to describe the Net Asset Value (NAV) of a scheme after the dividend is paid out (remember that the NAV would have dropped to the extent of the dividend paid)?
A
Ex-Dividend NAV
B
Cum-Dividend NAV
C
Lower NAV
D
Dividend NAV
Correct Option:
A
Explanation
After a dividend is paid, the scheme's NAV decreases by approximately the amount of the dividend distributed. This adjusted NAV is known as the Ex-Dividend NAV.
