Chapter $13$

Financial Planning Exercise $7$

Calculating approximate yield on mutual fund capital gains distributions of $$1\mathrm{.}03$ a share.

a$.$ Using the approximate yield formula, what rate of return did Elliot earn on his investment? Round the answer to two decimal places. $\%$

b$.$ Repeat the calculation using a financial calculator. Round the answer to two decimal places. $\%$

c$.$ Would he have made a $20\%$ rate of return if the stock had risen to $$30$ a share?