An investor pays a NAV per share of €7.74 and purchases 100 shares in the Zebra Fund. After several months the NAV per share has dropped to €6.80 per share, however the fund still earned €0.75 per share in dividend income. What was the investors return on this investment?
Investors return on the investment
Fund Value at the beginning = €774 [100 Shares x €7.74 per share]
Fund Value at the end = €680 [100 Shares x €6.80 per share]
Total Dividend received = €75 [100 Shares x €0.75 per share]
Investors return on this investment = [{(Fund value at the end - Fund value at the beginning) + Total Dividend received} / Fund Value at the beginning] x 100
= [{(€680 - €774) + €75} / €774] x 100
= [(-€94 + €75) / €774] x 100
= [-€19 / €774] x 100
= -2.45% (Negative Return)
“Hence, the Investors return on this investment will be -2.45% (Negative Return)”
An investor pays a NAV per share of €7.74 and purchases 100 shares in the Zebra...
An investor pays a NAV per share of €7.74 and purchases 100 shares in the Zebra Fund. After several months the NAV per share has dropped to €6.80 per share, however the fund still earned €0.75 per share in dividend income. What was the investors return on this investment?
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...
The NAV of a mutual fund is $10 per share. You invest $100,000 in the fund. The front end load is 2%. You sell your shares within six months at an NAV of $11 per share. The redemption fees is 3%. What is your return from this mutual fund investment?
The NAV of a mutual fund is $10 per share. You invest $100,000 in the fund. The front end load is 2%. You sell your shares within six months at an NAV of $11 per share. The redemption fees is 3%. What is your return from this mutual fund investment?
An investor buys 100 shares of stock selling at $76 per share using a margin of 67%. The stock pays annual dividends of $3.00 per share. A margin loan can be obtained at an annual interest cost of 8.6%. Determine what return on invested capital the investor will realize if the price of the stock increases to $110 within six months. What is the annualized rate of return on this transaction? If the price of the stock increases to $110...
The NAV of a mutual fund is $10 per share. You invest $100,000 in the fund. The front end load is 2%. The investment return of the fund for the year was 10%. You sell your shares. The redemption fees is 3% and the expense ratio is 4%. What is your return from this mutual fund investment?
If an investor purchases a stock that appreciates from $50 per share to $100 per share over that twelve-month period, what is his/her return with 50% margin (assume no interest rate)? What is the return assuming no margin?
A no–load mutual fund had NAV per share of $24.00 on January 1. On December 31 of the same year the fund's NAV was $26.49. Income distributions were $1.15 and the fund had capital gain distributions of $1.95. Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year? What is the geometric average return of a stock that returned 39%, -30%, 48%, -15% and 36% over the last 5 years?
The Profitability Fund had NAV per share of $23.66 on January 1, 2009. On December 31 of the same year the fund's NAV was $24.27. Income distributions were $1.00 and the fund had capital gain distributions of $1.19. Without considering taxes and transactions costs, what rate of return did an investor receive on the Profitability fund last year? Select one: a. 6.68% b. 6.51% c. 2.58% d. 7.61% e. 11.83%
An investor shorts 100 shares of a stock when the share price is $50 and closes out the position one week later when the share price is $48. The stock pays a dividend of $1.5 per share during the week. Assume that the risk free interest rate is zero. How much does the investor gain?