Refer to Problem 12.11. If OhYes was a load fund with a 2% front-end load, what would be the HPR?
Answer to relevant QuestionsYou are considering the purchase of shares in a closed-end mutual fund. The NAV is equal to $22.50 and the latest close is $20.00. Is this fund trading at a premium or a discount? How big is the premium or discount? Briefly discuss holding period return (HPR) and yield as measures of investment return. Are they equivalent? Explain. Briefly describe each of the following return measures for assessing portfolio performance and explain how they are used. a. Sharpe's measure b. Treynor's measure c. Jensen's measure (Jensen's alpha) Describe the 2 items an investor should consider before reaching a decision to sell an investment. Niki Malone’s portfolio earned a return of 11.8% during the year just ended. The portfolio’s standard deviation of return was 14.1%. The risk-free rate is currently 6.2%. During the year, the return on the market ...
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