nd Performance You can do some calculations on your own-beyond what the magazines and financial experts do. The following formula will help you determine the return you would be earning for one year. You are adding the dividend per share plus increases in share prices, and dividing by the price you paid for your initial shares. Return on Mutual Fund (Number of Shares X NAV) + Dividends C ost of Initial Investment - 1 X 100 Example: You own 50 shares of Prom mutual fund. The net asset value (NAV) is $26.12. You have received total dividends (cash or shares) of $400 during the year. The cost of your initial investment was $1,300. Return = (50 X $26.12) + $400 $1,300 - 1 X 100 - 1.3123 - 1 X 100 = .3123 x 100 = 31.23% Solve the following problems using the above formula for the one-year return on a mutual fund. Round your answers to two decimal places. a. 100 shares, NAV $31.20, dividends of $250, initial investment of $2,900 b. 75 shares, NAV $8.40, dividends $102, initial investment $590 c. 250 shares, NAV $16.11, dividends $322, initial investment $4,000