10. Forecasting mutual fund value Evaluating Mutual Fund Performance When buying a mutual fund, you might expect to earn money through (from dividends), (from increases in share price of the fund's underlying securities), or both. You can calculate your total carings from a given investment by determining the approximate yield. This value makes it easier to compare investment options. Using Approximate Yield with Mutual Funds The formula for approximate yield of an investment can look intimidating, but it's just a function of three things: (1) dividends eamed, (2) capital gains distributions received, and (3) change in share price. Based on the information in the table, compute the approximate yield for each of the two funds that follow. Mutual Fund 1 $1.20 Mutual Fund 2 $2.90 Annual dividends and capital gains distributions Beginning mutual fund share price Ending mutual fund share price $55 $112 $67 5139 The approximate yield for Mutual Fund 1 is and the approximate yield for Mutual Fund 2.is True or False: For these investments to be equally attractive, Mutual Fund 1 must carry a lower risk than Mutual Fund 2. True False capital gains distribut e yield for each of the two funds that follow. Mutual Fund 1 M dividends and capital gains ing mutual fund share price ns 21.64% $1.20 $55 mutual fund share price 19.67% $67 23.82% 5.18% mate yield for Mutual Fund 1 is and the approximate yie se: For these investments to be equally attractive, Mutual Fund 1 musta True False ual Funds it's just a function of three things: (1) dividends E. Based on the information in the table, compute the stual Fund 2 $2.90 23.82% $112 5.31% $139 21.64% 21.51% mate yield for Mutual Fund 2 is nd 1 must carry a lower risk than Mutual Fund 2. Funds, ETFs, and Real Estate fyture income arn money through s in share price of the oximate yield. This (from dividends) ), or both. You can cale pare investment options future income future capital appreciation Using Approximate Yield with Mutual Funds investment can look intimidating, but it's just a function of three things: (1) eceived, and (3) change in share price. Based on the information in the table, unds that follow Mutual Fund 1 Mutual Fund 2 distributions $1.20 $2.90 Back to Assignment Attempts Keep the Highest/3 10. Forecasting mutual fund value Evaluating Mutual Fund Performance When buying a mutual fund, you might expect to earn mo future capital appreciation (from increases in shar future income etermining the approximate future capital appreciation ok The formula for approximate yield of an investment ca earned, (2) capital gains distributions received, and approximate yield for each of the two Using Appro