Chapter 13 Financial Planning Exercise 9 Calculating approximate yield on mutual fund About a year ago, Ramon Navarrete bought some shares in the Saphire Lake Mutual Fund He bought the fund at $25 80 a share, and it now trades at $26 30 Last year the fund paid dividends of 51 cents a share and had capital gains distributions of $1 03 a share Using the approximate yield formula, what rate of return did Ramon earn on his investment Round the answer to two decimal places Repeat the calculation using a handheld financial calculator Round the answer to two decimal places Would he have made a 20 rate of return if the stock had risen to $30 a share Select YesNo

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Question: Chapter 13 Financial Planning Exercise 9 Calculating approximate yield on mutual fund About a year ago, Ramon Navarrete bought some shares in the Saphire Lake

Chapter 13 Financial Planning Exercise 9 Calculating approximate yield on mutual fund

About a year ago, Ramon Navarrete bought some shares in the Saphire Lake Mutual Fund. He bought the fund at $25.80 a share, and it now trades at $26.30. Last year the fund paid dividends of 51 cents a share and had capital gains distributions of $1.03 a share.

Using the approximate yield formula, what rate of return did Ramon earn on his investment? Round the answer to two decimal places. %
Repeat the calculation using a handheld financial calculator. Round the answer to two decimal places. %
Would he have made a 20% rate of return if the stock had risen to $30 a share? -Select-YesNo

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