When evaluating your portfolio at year end, you notice that the mutual fund you bought a year ago for $18 is now trading for $16. The mutual fund has recently paid a $.50 dividend. The total return is closest to:
A) -8.33%
B) 2.78%
C) 8.33%
D) 15.63%

Question

Quizplus · Accepted Answer

The total return is calculated as (Ending Price - Beginning Price + Dividend) / Beginning Price. Here, it is ($16 - $18 + $0.50) / $18 = -8.33%.

When Evaluating Your Portfolio at Year End, You Notice That