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? |
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%
An investor purchases a mutual fund for $50. The fund pays dividends of $2.30, distributes a...
An investor purchases a mutual fund share for $100. The fund pays dividends of $6, distributes a capital gain of $7, and charges a fee of $5 when the fund is sold one year later for $105. What is the net rate of return from this investment? (Round your answer to the nearest whole number.) An investor purchases a mutual fund share for $100. The fund pays dividends of $6, distributes a capital gain of $7, and charges a fee...
An investor purchases a mutual fund for $75. The fund pays dividends of $1.80, distributes a capital gain of $3, and charges a fee of $3 when the fund is sold one year later for $82.20. What is the net rate of return from this investment? (Enter your answer to the nearest whole number.) Rate of return %
An investor purchases a mutual fund for $30. The fund pays dividends of $.60, distributes a capital gain of $5, and charges a fee of $5 when the fund is sold one year later for $32.40. What is the net rate of return from this investment? (Enter your answer to the nearest whole number.)
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A mutual fund’s net asset value is $39.30, but the fund charges a 3 percent load fee (front- loaded) and an exit fee of 1 percent (if redeemed in 6 months) of net asset value. An individual client purchases 10 shares of the mutual fund on Jan 5 of year 20X1. During the year 20X1, the fund distributes $3.45 capital gain and $0.75 dividend income. The net asset value rises to $42.12 on Jan 5 of year 20X2 and the...
Fred bought $10,000 of Big Mutual Fund shares. 3 months later, the mutual fund distributes capital gains dividends of $1,000 to Fred. How is the $1,000 treated on Fred’s tax return? a.). Not taxed to Fred, but subtracted from the basis of the mutual fund shares b.). Taxed to Fred as long-term capital gain c.). Taxed to Fred as ordinary income d.). Taxed to Fred and short term capital gain
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Consider a mutual fund with $214 million in assets at the start of the year and with 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2 million. The stocks included in the fund's portfolio increase in price by 8%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00 % , which are deducted from portfolio...
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A. Consider a mutual fund with $206 million in assets at the start of the year and with 20 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2 million. The stocks included in the fund's portfolio increase in price by 6%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 0.50%, which are deducted from portfolio assets...