1. An investor purchases a mutual fund for $50. The fund pays dividends of $1.50, distributes a capital gain of $4, and charges a fee of $4 when the fund is sold one year later for $50.50. What is the net rate of return from this investment? Rate of return %
2. You recently purchased a stock for $25 that produces a 10% rate of return. You expect dividends of $3 every year for the next 5 years. What is the present value of the stock?
3. An investor purchases a mutual fund share for $100. The fund pays dividends of $2, distributes a capital gain of $3, and charges a fee of $1 when the fund is sold one year later for $101. What is the net rate of return from this investment? Rate of return