What rate of return did ramon earn on his investment

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Reference no: EM132046457

About a year ago, Ramon Navarrete bought some shares in the Sapphire Lake Mutual Fund. He bought the fund at $24.50 a share, and it now trades at $26.00. Last year the fund paid dividends of 40 cents a share and had capital gains distributions of $1.83 a share.

a. Using the approximate yield formula, what rate of return did Ramon earn on his investment? Round the answer to two decimal places.

b. Repeat the calculation using a handheld financial calculator. Round the answer to two decimal places.

Reference no: EM132046457

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