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18 May, 22:48

Assume that one year ago you bought 100 shares of a mutual fund for $13.50 per share, you received a $0.42 per-share capital gain distribution during the past 12 months, and the market value of the fund is now $17. Calculate the total return for this investment if you were to sell it now. (Do not round intermediate calculations. Round your answer to the nearest whole dollar.)

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  1. 18 May, 23:09
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    The total return for this investment if you were to sell it now is 29.04%

    Explanation:

    The total return on the investment=total share capital gain+Total value now-Total value one year/total value one year

    Total share capital gain=$0.42*100=$42

    Total value now=$17*100=$1,700

    Total value one year ago=$13.50*100=$1,350

    Total return on the mutual fund = ($42+$1700-$1,350) / $1350

    Total return on the mutual fund=$392 / $1350=29.04%
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