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In 1997 I invested $2,000 in a mutual fund. In 1999 I made 4 additional purchases of $150.00 each. All dividends were reinvested. Using Quicken to track my investments, it calculates the return on investment using the basis of all purchases -- including those made through dividend reinvestment.

It is my opinion that the true return on investment is the total gain minus only that money which I have used out of my pocket -- that is, a total of $2,600.

Which provides a more accurate return on investment: The total value minus the total basis including purchases using the reinvested dividends? Or the total value minus only my out-of-pocket purchases?
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