Dane purchased 3,000 shares of a mutual fund at an offer price of $6.03 per share. Later, he sold the investment for $3.64 per share. During the time Dane owned the shares, the fund paid a dividend of $0.52 per share. What was his return on investment? (Round to nearest tenth percent)

Question

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The correct answer is A. The return on investment is calculated as follows:Return on investment = (Sale price per share - Purchase price per share + Dividends per share) / Purchase price per share= ($3.64 - $6.03 + $0.52) / $6.03= -$2.89 / $6.03= -0.479= -47.9%Rounding to the nearest tenth percent, the return on investment is -31.0%.

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