You purchase shares in an investment company such as a mutual fund for $35 a share. The

Question:

You purchase shares in an investment company such as a mutual fund for $35 a share. The fund makes the following cash payments (“distributions”):
Year Distribution
1 .......... $1.00
2 .......... 3.15
3 .......... 2.09
4 .......... 1.71
At the end of the fourth year, you sell the shares for $41. What was the dollar-weighted rate of return on your investment?