Asked by Renee Sinclair on May 11, 2024
Verified
At the end of 2012, the RBC Canadian Dividend Fund was the largest equity mutual fund in Canada. The aggregate market value of its holdings at the end of 2012 was $9.995 billion. The fund's annual returns in successive years from 2003 to 2012 inclusive were 28.3%, 4.4%, -0.5%, 23.5%, 12.9%, 21.1%, 15.1%, 3.0% - 27.0%, and 27.3% respectively. For the 3-year, 5-year, and 10-year periods ending December 31, 2012, what were the fund's equivalent annually compounded returns?
Equity Mutual Fund
A type of mutual fund that invests primarily in stocks, aiming to provide returns through dividends and capital gains.
Annual Returns
The yearly profit or loss generated by an investment, expressed as a percentage of the investment's initial value.
Aggregate Market Value
The total market capitalization of a company, calculated by multiplying the current stock price by the total number of outstanding shares.
- Understand and calculate equivalent annually compounded returns.
- Analyze the performance of mutual funds based on historical data to calculate their compounded annual returns.
Verified Answer
AF
Ahmad FarooqMay 17, 2024
Final Answer :
3-yr: 1.45% compounded annually, 5-yr: 5.94% compounded annually, 10-ry: 9.50% compounded annually
Learning Objectives
- Understand and calculate equivalent annually compounded returns.
- Analyze the performance of mutual funds based on historical data to calculate their compounded annual returns.