Tamara purchased 1,500 shares of a mutual fund at an offer price of $7.08 per share. Later she sold the investment for $10.02 per share. During the time Tamara owned the shares, the fund paid a dividend of $0.21 per share. What was her return on investment? (Round to nearest tenth percent)

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Quizplus · Accepted Answer

Tamara's total initial investment was 1,500 shares * $7.08 = $10,620. She sold her shares for 1,500 * $10.02 = $15,030. She also received dividends of 1,500 * $0.21 = $315. Her total return is the sum of the sale and dividends minus the initial investment: ($15,030 + $315) - $10,620 = $4,725. The return on investment (ROI) is ($4,725 / $10,620) * 100 = 44.5%.

Tamara Purchased 1,500 Shares of a Mutual Fund at an Offer