Homework Answers
Here first we calculate the dollar return on investment = Dividend + capital gain distribution + profit on sale or (-loss on sale) - charges
= $ 1.80 + 3 +(82.20 - 75) - 3
return on investment in dollars = $ 9
net rate of return on investment = return on investment in dollars / purchase price = 9 / 75 = 0.12
net rate of return on investment = 12%
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Appendix B
Appendix D
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