Stan invested $15,000 in a mutual fund with a 4% load when the fund's net asset value (NAV) was $10.00. Stan held his shares for three years before selling his shares when the fund's NAV was $13.25. Stan received three annual year-end dividends of $0.50, $0.60, and $0.75 per share in years one, two and three, respectively (his dividends were not reinvested). What annual return did Stan earn on his investment in the fund? Ignore other fees and operating expenses in calculating the return.

Question

Quizplus · Accepted Answer

The Answer of Stan invested $15,000 in a mutual fund with a 4% load when the fund's net asset value (NAV) was $10.00. Stan held his shares for three years before selling his shares when the fund's NAV was $13.25. Stan received three annual year-end dividends of $0.50, $0.60, and $0.75 per share in years one, two and three, respectively (his dividends were not reinvested). What annual return did Stan earn on his investment in the fund? Ignore other fees and operating expenses in calculating the return.

Stan Invested $15,000 in a Mutual Fund with a 4