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An investor purchases a mutual fund for $50. The fund pays dividends of $2.30, distributes a...

An investor purchases a mutual fund for $50. The fund pays dividends of $2.30, distributes a capital gain of $2, and charges a fee of $2 when the fund is sold one year later for $52.70. What is the net rate of return from this investment?

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Answer #1

net rate of return = (selling price+capital gain +dividend-fees-purchase price)/purchase price*100

.=(52.7+2+2.3-2-50)/50*100=10%

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