Question

assume that one year ago you bought 100 shares of a mutual fund for 14 per share you recieved a 0.75 per share capital gain distribution during the past 12 months and the market value of the fund is now 17 calculate the percent of total return ofr you 1400 investment

Answer 1

26.78% ≈ 26.8%

Step-by-step explanation:

Given:

Shares bought = 100

Buying price per share = $14

Total investment = $1400

Capital gain = $0.75 per share

Total capital gain = $0.75 × 100 = $75

Market value = $17

Thus,

Gain from increase in market value per share = $17 - $14 = $3

Therefore,

Total gain = $75 + $3 × 100 = $375

Total return =
`\frac{\textup{Total gain}}{\textup{Total investment}}*100\%`

=
`\frac{\textup{375}}{\textup{1400}}*100\%`

= 26.78% ≈ 26.8%