Question

A closed-end fund starts the year with a net asset value of $15.00. By year-end, NAV...

A closed-end fund starts the year with a net asset value of $15.00. By year-end, NAV equals $15.20. At the beginning of the year, the fund was selling at a 1% premium to NAV. By the end of the year, the fund is selling at a 5% discount from NAV. The fund paid year-end distributions of income and capital gains of $1.30.

a. What is the rate of return to an investor in the fund during the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What would have been the rate of return to an investor who held the same securities as the fund manager during the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A closed-end fund starts the year with a net asset value of $29. By year-end, NAV...
A closed-end fund starts the year with a net asset value of $29. By year-end, NAV equals $30.80. At the beginning of the year, the fund is selling at a 4% premium to NAV. By the end of the year, the fund is selling at a 9% discount to NAV. The fund paid year-end distributions of income and capital gains of $3.20. a. What is the rate of return to an investor in the fund during the year? (Do not...
23 . A closed-end fund starts the year with a net asset value of $21. By...
23 . A closed-end fund starts the year with a net asset value of $21. By year-end, NAV equals $20.5. At the beginning of the year, the fund is selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 4% discount to NAV. The fund paid year-end distributions of income and capital gains of $2.50. What is the rate of return to an investor in the fund during the year? hello...
A closed-end fund starts the year with a net asset value of $10. By year-end, its...
A closed-end fund starts the year with a net asset value of $10. By year-end, its net asset value equals $12. At the start of the year, the fund sells at a 5% discount to the NAV. At the end of year, the fund sells at a 2% premium. The fund paid year-end distributions of income and capital gains of $1 per share. Suppose an investor invests $10,000 at the start of the year. Please answer the following questions: 1....
Suppose that at the start of the year, a no-load mutual fund has a net asset...
Suppose that at the start of the year, a no-load mutual fund has a net asset value of $27.95 per share. During the year, it pays its shareholders a capital gain and dividend distribution of $1.12 per share and finishes the year with an NAV of $30.80. What is the return to an investor who holds 258.156 shares of this fund in his (nontaxable) retirement account? Do not round intermediate calculations. Round your answer to two decimal places.   % What...
A year​ ago, the Really Big Growth Fund was being quoted at an NAV of ​$21.63...
A year​ ago, the Really Big Growth Fund was being quoted at an NAV of ​$21.63 and an offer price of ​$22.77. ​Today, it's being quoted at ​$23.56 ​(NAV) and ​$24.80 ​(offer). What is the holding period return on this load​ fund, given that it was purchased a year ago and that its dividends and capital gains distributions over the year have totaled ​$1.38 per​ share? Assume that none of the dividends and capital gains distributions are reinvested into the...
Consider a mutual fund with $207 million in assets at the start of the year and...
Consider a mutual fund with $207 million in assets at the start of the year and with 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $4 million. The stocks included in the fund's portfolio increase in price by 8%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at...
Consider a mutual fund with $600 million in assets at the start of the year and...
Consider a mutual fund with $600 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2.7 million. The stocks included in the fund's portfolio increase in price by 9%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at year-end....
Consider a mutual fund with $620 million in assets at the start of the year and...
Consider a mutual fund with $620 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $3.5 million. The stocks included in the fund's portfolio increase in price by 8%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at year-end....
Consider a mutual fund with $340 million in assets at the start of the year and...
Consider a mutual fund with $340 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2.4 million. The stocks included in the fund's portfolio increase in price by 9%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at year-end....
Consider a mutual fund with $480 million in assets at the start of the year and...
Consider a mutual fund with $480 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2.5 million. The stocks included in the fund's portfolio increase in price by 6%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at year-end....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT