Twelve months ago, Gene Peterson purchased 400 shares in the no-load Black Rock Equity Dividend I fund—a Morningstar 5-star fund that seeks long-term total return and current income. His rationale for choosing this fund was that he wanted a fund that was conservative and highly rated. Each share in the fund cost $18.60. At the end of the year, he received dividends of $0.11 a share and a capital gain distribution of $0.08 a share. At the end of 12 months, the shares in the fund were selling for $12.18.

a. How much did Mr. Peterson invest in this fund?

b. At the end of 12 months, what is the total return for this fund?

c. What is the percentage of total return?

d. Despite the fact that this fund is a 5-star fund, it decreased in value. What factors led to the decrease in value?