At the beginning of the year,you invested $7,500 in a no-load mutual fund with a NAV of $30.00.At the end of the year,the fund distributed $1.05 per share in short-term earnings and $3.00 per share in long-term earnings.The end of year NAV was $24.75.What was your annual rate of return on this investment?

Question

Quizplus · Accepted Answer

Number of shares = $7,500/$30.00 = 250.00
Return = [250 × ($1.05 + $3.00 + $24.75) - $7,500]/$7,500 = -4.00 percent

At the Beginning of the Year,you Invested $7,500 in a No-Load