Sabrine purchased 4,500 shares of a mutual fund at an offer price of $8.98 per share. Later, she sold the investment for $7.39 per share. During the time she owned the shares, the fund paid a dividend of $0.58 per share. What was her return on her investment? (Round to the nearest tenth)

Question

Quizplus · Accepted Answer

To calculate the return, find the total cost and total revenue. Cost: 4,500 shares * $8.98 = $40,410. Revenue from selling: 4,500 shares * $7.39 = $33,255. Dividend income: 4,500 shares * $0.58 = $2,610. Total revenue: $33,255 + $2,610 = $35,865. Return = (Total Revenue - Total Cost) / Total Cost = ($35,865 - $40,410) / $40,410 = -11.2%.

Sabrine Purchased 4,500 Shares of a Mutual Fund at an Offer