You are evaluating a closed-end mutual fund and see that its price is different from its...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 (s) of 2.80% and a dividend yield (5) of 4.00%. The fund has experienced a risk-adjusted abnormal return (a) of 2.30%. By what amount (premium or discount) is the fund likely to trade relative to its NAV? Note: Use a minus sign if the amount is a discount. Round your answer to 2 decimal places. Amount % 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 (s) of 2.80% and a dividend yield (5) of 4.00%. The fund has experienced a risk-adjusted abnormal return (a) of 2.30%. By what amount (premium or discount) is the fund likely to trade relative to its NAV? Note: Use a minus sign if the amount is a discount. Round your answer to 2 decimal places. Amount %
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
How can adults continue to function relatively normally after surgery to remove the thymus, tonsils, spleen, or lymph nodes?
-
Revisit the exact analysis of the inverting amplifier in section 4.3. (a) Find an expression for the voltage gain if R in , R out = 0, Ao . (b) For R2 = 27k and R1 = 3k, plot the ration of the...
-
Develop and solve the knapsack formulation to schedule the project presented in Table 7.10, the resource for which is presented in Table 7.11. Draw the Gantt chart for the schedule. Use the following...
-
How has the role of the general manager evolved?
-
Most grocery stores use bar code scanning technologies that interface with cash registers used to process customer purchases. Cashiers use the scanners to read bar code labels attached to each...
-
Profitability Ratios East Point Retail, Inc., sells professional women's apparel through company - owned retail stores. Recent financial information for East Point is provided below ( all numbers in...
-
Huazei Lei was asked to prepare a flowchart for the accounts receivable process. It was discovered that it doesn't just involve the accounting department, but other departments as well. What is the...
-
Why should application programs that update monetary data items in the database maintain a suspense account?
-
Write an essay distinguishing between the four different types of banking and explain their different functions.
-
Distinguish between an open-ended scheme and a closed-ended scheme.
-
Briefly explain the nature of the following types of operating system integrity flaws: a. Incomplete parameter validation b. Implicit sharing of data c. Asynchronous validation
-
Briefly explain what is meant by a reference monitor. What is the relationship between a security kernel and a reference monitor?
-
After running the DADM simulation model for 5,000 iterations, Merck obtains the results shown below for the present value of costs for each vendor. What is the probability that Vendor B exceeds its...
-
Stephen Schor, an accountant in New York City, advised his client, Andre Romanelli, Inc., to open an account at J. P. Morgan Chase Bank, N.A., to obtain a favorable interest rate on a line of credit....
-
Below are the financial accounts of Dodge Realty, Inc. The company has just completed its 10th year of operations ended December 31, 20x8. Required 1. Prepare the income statement, statement of...
-
The following are the accounts of Creative Advertising, Inc., an agency that develops marketing materials for print, radio, and television. The agencys first year of operations ended on January 31,...
-
Southwest Airlines Co. is one of the most successful airlines in the United States. Its annual report contains this statement: We are a company of People, not Planes. That is what distinguishes us...
Study smarter with the SolutionInn App