$4.$ NAV

A closed$-$end fund starts the year with a net asset value of $$32\mathrm{.}00.$ By year$-$end, NAV equals

$$32\mathrm{.}10.$ At the beginning of the year, the fund was selling at a $1\mathrm{.}2\%$ 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 $$3\mathrm{.}00.$

a$.$ What is the rate of return to an investor in the fund during the year?

b$.$ What would have been the rate of return to an investor who held the same securities as the

fund manager during the year?