Question: 4. Forecasting mutual fund value Evaluating Mutual Fund Performance When buying a mutual fund, you might expect to earn money through, (from increases in share

 4. Forecasting mutual fund value Evaluating Mutual Fund Performance When buying
a mutual fund, you might expect to earn money through, (from increases
in share price of the fund's underlying securities), or both. You can
calculate your total earnings from a given investment by determining the approximate
yield. This value makes it easier to compare investment options. Using Approximate

4. Forecasting mutual fund value Evaluating Mutual Fund Performance When buying a mutual fund, you might expect to earn money through, (from increases in share price of the fund's underlying securities), or both. You can calculate your total earnings from a given investment by determining the approximate yield. This value makes it easier to compare investment options. Using Approximate Yield with Mutual Funds The formula for approximate yield of an investment can look intimidating, but it's just a function of three things: (1) dividends earned, (2) capital gains distributions received, and (3) change in share price. Based on the information in the table, compute the approximate yield for each of the two funds that follow. The apgroximate yield for Mutual Fund 1 is and the approximate yieid for Mutual Fund 2 is True or False: For these investments to be equally attractive. Mutual Fund 1 must carry a lower risk than Mutual Fund 2 . True False raluating Mutual Fund Performance hen buying a mutual fund, you might expect to eam money through (from dividends), (from increases in share price of th ). or both. You can calculate your total eamings om a given investment by determining the approximate yield. This jare investment options. When buying a mutual fund, you might expect to earn money through. (from dividends), (from increases in share price of the fund's underlying securities), or both. You can calculate your total earnings atermining the approximate yield. This value makes it easier to compare investment options. Using Approximate Yield with Mutual Funds The approximate yleld for Mutual Fund 1 is and the approximate yleid for Mutual Fund 2 is True or False: For these investments to be equally attractive, Mutual Fund 1 must carry a lower risk than Mutual Fund 2 . True False The approximate yield for Mutual Fund 1 is and the approximate yieid for Mutual Fund 2 is True or Falsei for these investments to be equally attractive, Mutual Fund i must carry a lower nisk than Mutual fund 2

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