You are evaluating a closed-end mutual fund and see that its price is different from its net
Fantastic news! We've Found the answer you've been seeking!
Question:
You are evaluating a closed-end mutual fund and see that its price is different from its net asset value (NAV).
The fund has an expense ratio (ε) of 3.66% and a dividend yield (δ) of 4.00%. The fund has experienced an abnormal risk-adjusted return (α) of 3.62%.
What amount (premium or discount) is the fund likely to trade relative to its NAV?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: