Sunday, December 11, 2011

How to compute net rate of return?

An investor purchases a mutual fund for $50. The fund pays dividends of $1.50, distributes a capital gain of $2 and charges fee of $2 when the fund is sold in one year later for $52.50. What is the net rate of return from this investment? How will I compute this?How to compute net rate of return?
54/50

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