Question: Corporate Fund started the year with a net asset value of $12.00. By year-end, its NAV equaled $12.10. At the beginning of the year, the

Corporate Fund started the year with a net asset value of $12.00. By year-end, its NAV equaled $12.10. At the beginning of the year, the fund was selling at a 2% premium to NAV. By the end of the year, the fund is welling at a 7% discount to NAV. The fund paid year-end distributions of income and capital gains of $1.50

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

Part b. What would have been the rate of return to an investor who held the same securities as the fund manage during the year?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV equaled $12.10. The fund paid year-end distributions of income and capital gains of $1.50. What was the rate of...

7. Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV equaled $12.10. The fund paid year-end distributions of income and capital gains of $1.50. What was the rate...

12. Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV equaled $12.10. The fund paid year-end distributions of income and capital gains of $1.50. What was the...

16. Corporate Fund started the year with a net asset value of $12.50. By year-end, it's NAV equaled $12.10. The fund paid year-end distributions of income and capital gains of $1.50. What was the...

Corporate Fund started the year with a net asset value of $13.10. By year-end, its NAV equaled $12.40. The fund paid year-end distributions of income and capital gains of $1.80. What was the rate of...

Corporate Fund started the year with a net asset value of $15.90. By year-end, its NAV equaled $13.80. The fund paid year-end distributions of income and capital gains of $3.30. What was the rate of...

Corporate Fund started the year with a net asset value of $ 1 2 . 8 0 . By year - end, its NAV equaled $ 1 3 . 0 0 . The fund paid year - end distributions of income and capital gains of $ 1 . 4 0 ....

In an X-ray tube (see Fig. 25-35 and discussion in Section 25-11), the high voltage between filament and target is V. After being accelerated through this voltage and electron strikes the target...

The decomposition of hydrogen peroxide is a first-order reaction: H2O2(aq) H2O(l) + 1 / 2 O2(g) The half-life of the reaction is 17.0 minutes. a. What is the rate constant of the reaction? b. If you...

Consider Exhibit 14, which shows the graph of a perfectly competitive firm in the short run. a. If the firm's demand curve is MR3, does the firm earn an economic profit or loss? b. Which demand...

You should use direct quotation when

=+3. Do differences in profitability exist within the different business models in the video game industry? State possible reasons?

=+3. Explain a few differences between the business models of the music publishing houses and the record producer.

=+1. Point out the range of services by means of an example of the video and computer game industry! Also distinguish between the online and offline range of services!