You purchased 3,000 shares of a mutual fund at an offer price of $7.10 per share. Several months later you sold the shares for $8.45 per share. During the time you owned the shares, the fund paid a dividend of $0.29 per share. What was your return on investment? (Round to the nearest tenth)

Question

Quizplus · Accepted Answer

The return on investment (ROI) can be calculated by finding the total return and dividing it by the total initial investment cost, then multiplying by 100 to get a percentage. Initial investment = 3,000 shares * $7.10 = $21,300. Total return from selling = 3,000 shares * $8.45 = $25,350. Dividend received = 3,000 shares * $0.29 = $870. Total return = ($25,350 + $870) - $21,300 = $4,920. ROI = ($4,920 / $21,300) * 100 = 23.1%.

You Purchased 3,000 Shares of a Mutual Fund at an Offer