What formula is used to calculate the return of investment?

The formula utilized to calculate the return on investment is based on the change in the net asset value per unit (NAVPU) over a specified period. The correct formula is expressed as the difference between the current NAVPU and the NAVPU from the same period a year ago, divided by the NAVPU from the same period a year ago. This calculation effectively measures the percentage change in value over the year, providing a clear indication of the investment's performance.

By using the previous year's NAVPU as the denominator, the formula normalizes the return relative to the initial investment value, allowing for a standardized assessment of performance over time. This approach not only offers a clear picture of growth or decline in value but also facilitates comparisons across different time periods or investment options.

Thus, option A accurately encapsulates this methodology, emphasizing the importance of utilizing historical data for a comprehensive analysis of investment returns.