Question

Assume that one year ago, you bought 260 shares of a mutual fund for $19 per share and that you received an income dividend of $0.14 cents per share and a capital gain distribution of $0.24 cents per share during the past 12 months. Also assume the market value of the fund is now $15 a share. Calculate the total return for this investment if you were to sell it now.

Answer 1

The ROI is 1040.38 with Distributions and Dividends included if you sell it now.

Step-by-step explanation:

`260*19=$4940, cost is $4940\\0.14+0.24=0.38 \ in\ distributions/dividends\\260*15=3900, sale\ price \ is 3900\\(4940-3900)+0.38=1040.38`

Hope this helped!

Edit: This answer doesn't account for any fees, since you didn't list any fees. The only mutual funds that I know of without fees are index funds run by big financial institutions.