1-A year ago, an investor bought600 shares of a mutual fund at$8.65 per share. Over the past year, the fund has paid dividends of$0.81 per share and…

P12.1-A year​ ago, an investor bought 600 shares of a mutual fund at ​$8.65 per share. Over the past​ year, the fund has paid dividends of ​$0.81 per share and had a capital gains distribution of ​$0.73 per share.

a. Find the​ investor’s holding period​ return, given that this​ no-load fund now has a net asset value of ​$9.14.

b. Find the holding period​ return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of

​$8.86 per share.

P12.2-A year​ ago, the Really Big Growth Fund was being quoted at an NAV of ​$22.49 and an offer price of  ​$23.43 . ​Today, it’s being quoted at ​$24.37 ​(NAV) and ​$25.39 ​(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 ​$1.12 per​ share?

Assume that none of the dividends and capital gains distributions are reinvested into the fund. ​(​Hint: ​You, as an​ investor, buy fund shares at the offer price and sell at the​ NAV.)

P12.13- You are considering the purchase of shares in a​ closed-end mutual fund. The NAV is equal to ​$22.54 and the latest close is  $ 19.98 .  Is this fund trading at a premium or a​ discount? How big is the premium or​ discount?

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