Question: Evaluating Mutual Fund Performance When biving a mutual fund, you might expect to eam money through (from dividends), (from increases in share price of the

Evaluating Mutual Fund Performance When biving a mutual fund, you might expect to eam money through (from dividends), (from increases in share price of the fund's underfying securities), or both. You can calculate your total eamings fram a given investment by determining the appraximate yield. This value makes it easior to compare investment opelons. Using Approximate Yield with Mutual Funds The formula for approximate yieid of an investment can look intimidating, but its just a function of three things: (1) dividends named, (2) capital gains diteributions received, and (3) change in share price. Based on the information in the table, compute the approximate yieid for each of the two funds that follow. The oppraximete yleld for Mutusi Fund 1 is and the aperwimbte yitld for Mutual fund 2 is Thue or Faise: For theise investments to be equally atractive, Mulual fund i must carry a lower risk than Mutual Fund 2. True

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