Question

1. Assume that one year ago, you bought 120 shares of a mutual fund for $25 per share and that you received an income dividend of $0.25 cents per share and a capital gain distribution of $0.34 cents per share during the past 12 months. Also assume the market value of the fund is now $31 a share. Calculate the total return for this investment if you were to sell it now.

2. Assume that one year ago, you bought 170 shares of a mutual fund for $28 per share and that you received an income dividend of $0.14 cents per share and a capital gain distribution of $0.28 cents per share during the past 12 months. Also assume the market value of the fund is now $31 a share. Calculate the percentage of total return for your $4,760 investment.

Answer 1

Answer 1
		Units	Amount per share		Total
Net Investment		120	25		3000
Sale Value		120	31		3720
Profit on sale					720
Profit of Dividend		120	0.25		30
Profit of CG Distribution		120	0.34		40.8
			TOTAL PROFIT		790.8
Total Return for this investment			790.8
Answer 2
		Units	Amount per share		Total
Net Investment		170	28		4760
Sale Value		170	31		5270
Profit on sale					510
Profit of Dividend		170	0.14		23.8
Profit of CG Distribution		170	0.28		47.6
			TOTAL PROFIT		581.4
Total Return for this investment			581.4
% of total return		581.4 / 4760			12.21%