Question

Three years? ago, you invested in the Future Investco Mutual Fund by purchasing 1,000 shares of the fund at the price of $ 19.51 per share. Because you did not need the? income, you elected to reinvest all dividends and capital gains distributions. ? Today, you sell your 1,100 shares in this fund for ?$22.02 per share. If there were a 1?% load on this? fund, what would your rate of return? be?

The compounded rate of return on this investment over the? three-year period is

Answer #1

Value of investment Three year Ago = 1,000 × $19.51

= $19,510

VAlue of Investment Three year Ago was $19,510.

Value of investment today = 1,100 × $22.02

= $24,222

Value of investment Today is $24,222

Load = 1%

Net Proceed from sale of investment = $24,222 × (1 - 1%)

= $23,979.78.

Net Proceed from sale of investment is $23,979.78.

Rate of return in three year = ($23,979.78 - $19,510) / $19,510

= $4,469.79 / $19,510

= 22.91%.

Total Return on investment is 22.91%.

Annual Return = [(1 + 22.91%) ^ (1 / 3)] - 1

= 1.0712 - 1

= 7.12%

Annual Return on investment is 7.12%.

You invested in the no-load OhYes Mutual Fund one year ago by
purchasing 700 shares of the fund at the net asset value of $25.46
per share. The fund distributed dividends of $2.67 and capital
gains of $2.12. Today, the NAV is $27.15. What was your holding
period return?
Your holding period return was _%.

You invested in the? no-load OhYes Mutual Fund one year ago by
purchasing 600 shares of the fund at the net asset value of ?$
24.51 per share. The fund distributed dividends of ?$2.11 and
capital gains of ?$1.58. ?Today, the NAV is ?$26.20. If OhYes was a
load fund with a 3.5?% ?front-end load, what would be the? HPR?

1.You invested in the no-load OhYes Mutual Fund one year ago by
purchasing 800 shares of the fund at the net asset value of $25.75
per share. The fund distributed dividends of $1.81 and capital
gains of $1.64. Today, the NAV is $26.84. If OhYes was a load
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Hunter invested $9500 in shares of a load mutual fund. The load
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When Hunter purchased the? shares, the NAV per share was
?$92.
A year? later, Hunter sold the shares at a NAV of ?$85 per
share.
What is? Hunter's return from selling his shares in the mutual?
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Hunter's return from selling his shares in the mutual fund is
_%?

A year ago, an investor bought 600 shares of a mutual fund at
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You buy 20 mutual fund shares at a price of $57.40 per share.
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a.
12.69%
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c.
12.23%
d.
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You purchased shares of a mutual fund at an offering price of
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At the beginning of the year, you buy 800 shares in Muleshoe
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