to earn money through (future current income or future capital appreciation) from dividends (future capital appreciation or future current income) Mutual Fund #2 is (19.62%, 24.54%, 28.87% or 26.72%)

When buying a mutual fund, you might expect to earn money through dividends), both. You can calculate your total earnings from a given investment by determining the approximate yield. This value makes it easier to compare investment options. (from (from increases in share price of the fund's underlying securities), or 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 earned, (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. Annual dividends and capital gains distributions Beginning mutual fund share price Ending mutual fund share price Mutual Fund 1 $0.95 $60 $72 Mutual Fund 2 $2.65 $107 $140 The approximate yield for Mutual Fund 1 is and the approximate yield for Mutual Fund 2 is 18.18% 19.62% 28.87% 15.70% True or False: If both investments carry the same rate of risk, Mutual Fund 2 is a better investment than Mutual Fund 1 False O True