1. You purchase a mutual fund for $27.23. The fund's NAV is $26 (the implied load fee was $1.23). The NAV subsequently rises to $31.90 and you redeem the shares. What is the percentage return on your investment?

a. 17.15%

b. 14.63%

c. 13.26%

d. 25.5%

2. You purchase 100 shares of stock in a REIT for $36 ($3,600). You receive distributions of $1.75 a share consisting of $1.50 in ordinary income, $0.25 in long term capital gains, and $1 in return of capital. If you sell the shares for $50. If you sell the shares for a long term capital gains, what is the tax owed at 15% tax rate?

a. $75

b. $225

c. $137.50

d. $195

3. A mutual fund generates a 20% return. During the same period, the market return rose by 18%. If the risk free rate was 3% and the fund had a beta of 1.5. Based on CAPM, what would be the rate of return of the fund?

a. 22.5%

b. 25.5%

c. 18.0%

d. 21.0%