A client buys $10,000 worth of a mutual fund and pays a $100 commission. One year later, the fund is valued at $11,500. During the year, the client received $200 in dividends and paid a $100 commission to sell the position. What is the net holding period return (HPR) for the client?

Question

Accepted Answer

CIRO rules require reporting performance net of charges; the calculation must account for the initial commission as an increased cost and the final commission as a reduced proceeds.

A client buys $10,000 worth of a mutual fund and pays a $100 commission. One year later, the fund is valued at $11,500. During the year, the client received $200 in dividends and paid a $100 commission to sell the position. What is the net holding period return (HPR) for the client?

Discussion