CALCULATING MUTUAL FUND APPROXIMATE RATE OF RETURN:

Question:

A year ago, the Early Growth 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 1 year ago, its dividends and capital gains distributions over 1 year totaled $1.05 a share. (HINT: As an investor, you buy fund shares at the offer price and sell at the NAV).