Question

You bought Giant Growth Fund a year ago when it had a NAV of $21.50. The...

You bought Giant Growth Fund a year ago when it had a NAV of $21.50. The fund has a 3% front-end load. Today the fund is quoted at a NAV of $23.04 and an offer price of $23.73. Dividends and capital gains distributions over the year have totaled $1.05 per share. Calculate your HPR. Recalculate your HPR if this were a no-load fund.

Homework Answers

Answer #1

HPR with front-end load = {(Ending NAV + Dividends and capital gains distributions)/[beginning NAV*(1+front-end load)]} - 1

HPR with front-end load = {($23.04 + $1.05)/[$21.50*(1+0.03)]} - 1 = [$24.09/($21.50*1.03)] - 1 = ($24.09/$22.145) - 1 = 1.0878 - 1 = 0.0878 or 8.78%

HPR for no-load fund = [(Ending NAV + Dividends and capital gains distributions)/beginning NAV] - 1

HPR for no-load fund = [($23.04 + $1.05)/$21.50] - 1 = ($24.09/$21.50) - 1 = 1.1205 - 1 = 0.1205 or 12.05%

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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...
A year ago, the Vanguard Consumer Staples Index Fund (VCSAX) was being quoted at a NAV...
A year ago, the Vanguard Consumer Staples Index Fund (VCSAX) was being quoted at a NAV of $51.02 and an offer price of $55.76. Today, it’s being quoted at a NAV of $62.36 and an offer of $65.54. What is the percent holding period return on this front-load fund, given that it was purchased a year ago and that its dividends and capital gains distributions over the year have totaled $0.03 per share?
At the beginning of the year, you buy 800 shares in Muleshoe Mutual Fund, which currently...
At the beginning of the year, you buy 800 shares in Muleshoe Mutual Fund, which currently has a NAV of $48.10. The fund has a front-end load of 1.8%. Over the year, the fund distributed capital gains of $1.75 per share and dividend distributions of $1.42. At the end of the year, the NAV was at $54.47 and the offer price was at $55.45. A. If you sell after one year, what is your HPR? B. Recalculate your HPR, assuming...
You invested in the? no-load OhYes Mutual Fund one year ago by purchasing 600 shares of...
You invested in the? no-load OhYes Mutual Fund one year ago by purchasing 600 shares of the fund at the net asset value of ?$ 24.51 per share. The fund distributed dividends of ?$2.11 and capital gains of ?$1.58. ?Today, the NAV is ?$26.20. If OhYes was a load fund with a 3.5?% ?front-end load, what would be the? HPR?
1. One year ago, Super Star Closed-End Fund had a NAV of $10.40 and was selling...
1. One year ago, Super Star Closed-End Fund had a NAV of $10.40 and was selling at an 18% discount.    Today, its NAV is $11.60 and is priced at a 4% premium. During the year, the fund paid dividends of $.40 per share and had a capital gain distribution of $.95 per share. A. Calculate Super Star's NAV-based HPR for the year. B. Calculate Super Star's market-based HPR for the year. C. Recalculate Super Star's market-based HPR for the year,...
1.You invested in the​ no-load OhYes Mutual Fund one year ago by purchasing 800 shares of...
1.You invested in the​ no-load OhYes Mutual Fund one year ago by purchasing 800 shares of the fund at the net asset value of ​$25.75 per share. The fund distributed dividends of ​$1.81 and capital gains of ​$1.64. ​Today, the NAV is ​$26.84. If OhYes was a load fund with a 2​% ​front-end load, what would be the​ HPR? 2.One year​ ago, Super Star​ Closed-End Fund had a NAV of​$10.38 and was selling at​ a(n) 16% discount.​ Today, its NAV...
A year​ ago, an investor bought 400 shares of a mutual fund at ​$8.51 per share....
A year​ ago, an investor bought 400 shares of a mutual fund at ​$8.51 per share. Over the past​ year, the fund has paid dividends of ​$0.83 per share and had a capital gains distribution of ​$0.69 per share. a. Find the​ investor's holding period​ return, given that this​ no-load fund now has a net asset value of ​$9.28. b. Find the holding period​ return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the...
You invested in the​ no-load OhYes Mutual Fund one year ago by purchasing 700 shares of...
You invested in the​ no-load OhYes Mutual Fund one year ago by purchasing 700 shares of the fund at the net asset value of ​$25.46 per share. The fund distributed dividends of ​$2.67 and capital gains of ​$2.12. ​Today, the NAV is ​$27.15. What was your holding period​ return? Your holding period return was _​%. ​
A year​ ago, an investor bought 600 shares of a mutual fund at ​$8.56 per share....
A year​ ago, an investor bought 600 shares of a mutual fund at ​$8.56 per share. Over the past​ year, the fund has paid dividends of ​$0.89 per share and had a capital gains distribution of ​$0.65 per share. a. Find the​ investor's holding period​ return, given that this​ no-load fund now has a net asset value of ​$9.11. ( answer in % and 2 decimal places) b. Find the holding period​ return, assuming all the dividends and capital gains...
alison bought a popular mutual fund where its NAV was at $9.35. A year later the...
alison bought a popular mutual fund where its NAV was at $9.35. A year later the NAV is at $10.92. The total return for this fund from her annual statement showed that the fund gained 18.5% for the year. what percentage of this gain is attributable to dividends and capital gains distribution for the fund?