Question

1. Assume that one year ago, you bought 120 shares of a mutual fund for $25...

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.

Homework Answers

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%
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