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Assume that one year ago you bought 130 shares of a mutual fund for $17 per share, you received a capital gain distribution of $0.80 per share during the past 12 months, and the market value of the fund is now $21.
Calculate the total return for this investment if you were to sell it now.
(Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Respuesta :

jepessoa

Answer:

$624

Explanation:

First we have to calculate the total return per share and then we will multiply it by 130 shares.

Initially we invested $17 per share and we are to sell it at $21, that means we are earning $4 per share plus the $0.80 distribution we received during the year, our total gain per share = $4.80

total return for the investment = $4.80 per share x 130 shares = $624

the total rate of return for this investment would be $626 / ($17 x 130) = 28.24%

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