FIN208 Financial Markets Services

Financial Markets ServicesModel question

An investor purchases a mutual fund share for Rs 100. The fund pays dividends of Rs 2, distributes a capital gain of Rs 3, and charges a fee of Rs 1.5 when the fund is sold one year later for Rs…

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An investor purchases a mutual fund share for Rs 100. The fund pays dividends of Rs 2, distributes a capital gain of Rs 3, and charges a fee of Rs 1.5 when the fund is sold one year later for Rs 106. What is the one-year rate of return on this investment?

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