Shelby purchased 100 shares of ABCD Growth fund for $10.00 per share. She had income dividends of $15, capital gain distributions of $35, and a capital gain of $120 in the year she sold her shares. What was her percentage of total return on this investment?

Question

Quizplus · Accepted Answer

Shelby paid $10 per share for 100 shares, so her initial investment was $1,000 (100 shares x $10 per share).

Her income dividends were $15, her capital gain distributions were $35, and her capital gain from selling the shares was $120, for a total gain of $170 ($15 + $35 + $120).

To find the percentage return, we divide the total gain by the initial investment and multiply by 100:

($170 / $1,000) x 100 = 17%

Therefore, the answer is choice C.

Shelby Purchased 100 Shares of ABCD Growth Fund for $10