CALCU LATIN G M U TUAL FUN D AP P ROX IM ATE RATE O F RE TURN. A year ago, the Stellar Fund was being quoted at an NAV of $21.50 and an offer price of $23.35; today, it’s being quoted at $23.04

(NAV) and $25.04 (offer). Use the approximate yield formula or a financial calculator to find the rate of return on this load fund; it was purchased a year ago, and its dividends and capital gains distributions over the year totaled $1.05 a share.

(Hint: As an investor, you buy fund shares at the offer price and sell at the NAV.) L01