Question

Calculate the total return for each fund. Take the ending value divided by 1,000 (the beginning value), subtract 1, and multiply by 100. What are your investment returns for your money market fund and your stock fund

Answer 1

The total return for each fund is calculated as follows:

                                 Money Market Fund       Stock Fund

Total return                             35%                         25%.

What is the total return?

The total return can be computed using the given formula.

It can also be computed as the dollar returns divided by the beginning value (investment cost), multiplied by 100.

Question Completion with Calculations:

                                 Money Market Fund       Stock Fund         Total Fund

Beginning value                 $1,000                         $1,000             $2,000

Ending value                      $1,350                         $1,250              $2,600

Total return                          $350                            $250                $600

Using the given formula, the total return for each fund is as follows:

Total return          ($1,350/$1,000 - 1) x 100   ($1,250/$1,000 - 1) x 100

=                                   35%                                     25%                   30%

Thus, the total return for each fund is 35% for the Money Market Fund and 25% for the Stock Fund.

Learn more about computing returns at brainly.com/question/15726451

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