Posted by **Sandra** on Tuesday, December 18, 2012 at 10:35pm.

1. An investor purchases a mutual fund for $50. The fund pays dividends of $1.50, distributes a capital gain of $2, and charges a fee of $2 when the fund is sold one year later for $52.50. What is the net rate of return from this investment?

- Finanical -
**drwls**, Tuesday, December 18, 2012 at 10:44pm
There is a net gain of 1.50 + 2.00 + 2.50 = $6.00

The total (net) return rate for the one year period is 6/50 = 12%.

- Finanical -
**Sandra**, Wednesday, December 19, 2012 at 9:21pm
2. Open-end Fund A has 165 shares of ATT valued at 425 each and 50 shares of Toro valued at $45 each. Close-end Fund B as 75 shares at ATT and 100 shares of Toro. Both funds have 1,000 shares outstanding. (G 17-4)

a. What is the NAV of each fund using these prices?

b. Assume that another 165 shares of ATT valued at $25 are added to Fund A. The funds needed to buy the new shares are obtained by selling 647 more shares in Fund A. What is the effect on Fund A’s NAV if the prices remain unchanged?

c. If the price of ATT stock increases to $26.25 and the price of ATT stock declines to $43,375, how does that impact the NAV of both funds? Assume that Fund A has only 100 shares of ATT.

- Finanical -
**sandy**, Wednesday, December 19, 2012 at 11:47pm
4. An investor purchases a mutual fund share for $100. The fund pays dividends of $3, distributes a capital gain of $4, and charges a fee of $2 when the fund is sold one year later for $105. What is the net rate of return from this investment?

## Answer this Question

## Related Questions

- Finanical - 4. An investor purchases a mutual fund share for $100. The fund pays...
- mat/116 - Please help me slove this question. An investor invested a total of $3...
- algebra - An investor invested a total of $2,600 in two mutual funds. One fund ...
- algebra - An investor invested a total of $500 in two mutual funds. One fund ...
- algebra - an investor invested a total of 1,600 in 2 mutual funds.One fund ...
- Statistics - Probability - A mutual fund company has six funds that invest in ...
- Personal Finance - 3. Highest performing mutual fund (averaged more than 20%) ...
- math - Your invest $3,000 annually in a mutual fund that earns 10 percent ...
- math 141 - Maria just inherited $10,000. Her bank has a savings account that ...
- finance - A year ago, the Alpine Growth Fund was being quoted at an NAV of $21....

More Related Questions