You buy 100 shares in a no-load mutual fund at its net asset value of $10. During the year, the mutual fund distributes $0.75 in dividends. You redeem the shares for their net asset value of $12.03, and the fund does not charge an exit fee. What percentage return do you earn on the investment?
Answer to relevant QuestionsWhat are the implications of the comparisons? How would each of the following affect the percentage returns? a) You buy and sell stocks through an on-line broker. b) You are in the 25 percent federal income tax bracket.c) ...What is the CBOE, and why are secondary markets crucial to the popularity of options?What advantage does purchasing a stock index option offer over buying options on individual securities?A LEAP with an expiration date of two years is an option to buy stock at $24. The current market price of the stock is $35, and the market price of the LEAP is $15.a) What is the option’s intrinsic value?b) What is the ...How may the Black-Scholes option valuation model be used to determine the risk associated with the underlying stock?
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