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The​ All-State Mutual Fund has the following​ 5-year record of​ performance:     2016   2015   2014   2013   2012 Net investment...

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Finance

The​ All-State Mutual Fund has the following​ 5-year record of​performance:
    2016   2015  2014   2013   2012
Net investment income   0.95   0.91  0.83   0.71   0.66
Dividends from net investment income   (0.93)  (0.85)   (0.87)   (0.71)  (0.60)
Net realized and unrealized gains (or losses) on securitytransactions   4.24   5.15  (2.11)   2.75   (1.06)
Distributions from realized gains   (1.01)  (1.09)   0.00   (1.03)   0.00
Net increase (decrease) in NAV   3.25  4.12   (2.15)   1.72   (1.00)
NAV at beginning of year   12.76  8.64   10.79   9.07   10.07
NAV at end of year   16.01   12.76  8.64   10.79   9.07

This​ no-load fund's​ 5-year ​(2012-2016​) average annual compoundrate of return is ??%. ​(Round to two decimal​ places.)
This​ no-load fund's​ 3-year ​(2014-2016​) average annual compoundrate of return is ??%. ​(Round to two decimal​ places.)
If an investor bought the fund in 2012 at ​$10.07 a share and soldit 5 years later​ (in 2016​) at ​1$6.01 ​, the total profit pershare she would have made over the​ 5-year holding period is​$??

Answer & Explanation Solved by verified expert
4.0 Ratings (479 Votes)

For Average annual Compound growth rate (CAGR) for 5-year 2012-2016 ,

year 2012 2012 2013 2014 2015 2016
NAV at beginning -10.7
Dividend 0.6 0.71 0.87 0.85 0.93
Capital gain 0 1.03 0 1.09 1.01
NAV at end 16.01
Net cash flow -10.7 0.6 1.74 0.87 1.94 17.95
Use of IRR () function
Calculating CAGR 24.19%

For Average annual Compound growth rate (CAGR) for 3-year 2014-2016 ,

year 2014 2014 2015 2016
NAV at beginning -10.79
Dividend 0.87 0.85 0.93
Capital gain 0 1.09 1.01
NAV at end 16.01
Net cash flow -10.79 0.87 1.94 17.95
Use of IRR () function
Calculating CAGR 41.39%

Total profit in terms of dollar,

year 2014 2012 2013 2014 2015 2016
NAV at beginning -10.79
Dividend 0.6 0.71 0.87 0.85 0.93
Capital gain 0 1.03 0 1.09 1.01
NAV at end 16.01
Net cash flow -10.79 0.6 1.74 0.87 1.94 17.95
Sum of cash flow for 5 year
Total return 12.31
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