The total return for this investment, if it were sold now, is $837.
The total return on investment is the difference between the sales proceeds at current market value plus the capital gain minus purchase (investment) costs.
To determine the total return, we can evaluate the variables separately or compute the per-share difference and then multiply by the number of shares.
The number of shares in a mutual fund = 100
The purchase per-share price = $33.90
Per-share capital gain distribution = $0.42
The current market value of the fund per share = $41.85
The total returns = (Current value + Capital Gain - Purchase price) x 100
= ($41.85 + $0.42 - $33.90) x 100
= $837
Total sales proceeds (if sold now) = $4,185 ($41.85 x 100)
Total capital gain distribution = $42 ($0.42 x 100)
Purchase cost = $3,390 ($33.90 x 100)
The total returns = $4,185 + $42 - $3,390
= $837
The total returns can also be expressed as a percentage, as follows:
24.69% ($837/$3,390 x 100).
Thus, the total returns realized from the purchase of the mutual fund is $837, or 24.69% of the investment cost.
Learn more about determining the total returns at https://brainly.com/question/17023498
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