1. You bought shares of a mutual fund at the beginning of the year for $20/share. At the end of the year the shares were sold for $22/share. Near the end of the year you received a distribution of capital gains and dividends of $1.50/share. What was your percent return for the year?
7.5%
2.5%
17.5%
5%
2. The present value of the following cash flow stream is $5,933.86 when discounted at 11 percent annually. What is the value of the missing cash flow?
Year 1 Cash Flow $2000
Year 2 Cash Flow unknown
Year 3 Cash Flow $1750
Year 4 Cash Flow $1250