$9.$Calculating approximate yield on mutual fund. About a year ago, Ramon Navarrete

bought some shares in the Sapphire Lake Mutual Fund. He bought the fund at $$24\mathrm{.}50a$

share, and it now trades at $$26.$ Last year, the fund paid dividends of $40$ cents a share and

had capital gains distributions of $$1\mathrm{.}83$ a share. Using the approximate yield formula, what

rate of return did Ramon earn on his investment? Repeat the calculation using a handheld

financial calculator. What rate of return would he have earned if the stock had risen to $$30$

a share?

Calculating mutual fund approximate rate of return. A year ago, the Stellar Growth Fund

was being quoted at an NAV of $$21\mathrm{.}50$ and an offer price of $$23\mathrm{.}35$; today, it's being quoted

at $$23\mathrm{.}04($NAV$)$ and $$25\mathrm{.}04($offer$).$ Use the approximate yield formula or a handheld

financial calculator to find the rate of return on this load fund; it was purchased a year ago,

and its dividends and capital gains distributions over the year totaled $$1\mathrm{.}05$ a share. $($Hint:

As an investor, you buy fund shares at the offer price and sell at the NAV.$)$