12/n or 365/n

Shobhit Jain (CA) (4896 Points)

12 July 2016  
While solving sum in finance where period or date is involved why we divide anything by 12/n or 365/n?What it represents? Please explain with logic
for eg: Return on Mutual fund=
NAV @ end-NAV @ beg + dividend/NAV @ beg *12/n*100