What is the rate of return to an investor

Assignment Help Business Economics
Reference no: EM132117844

A closed-end fund starts the year with a net asset value of $25. By year-end, NAV equals $26.40. At the beginning of the year, the fund is selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 8% discount to NAV. The fund paid year-end distributions of income and capital gains of $2.80.

a. What is the rate of return to an investor in the fund during the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Rate of return % 

b. What would have been the rate of return to an investor who held the same securities as the fund manager during the year? (Round your answer to 2 decimal places.)

Rate of return %

Reference no: EM132117844

Questions Cloud

Company depreciation and amortization expense : The company has $6,900 interest expense, and the corporate tax rate is 35 percent. What was the company's depreciation and amortization expense?
What is the net present value : Numbers in parentheses are outflows. Both Year 0 and Year 3 cash flows are outflows. What is the net present value?
Responsibility of measuring company performance : The accounting profession has the important responsibility of measuring company performance accurately and fairly on a timely basis
How each of the given events will raise equilibrium wage : Predict how each of the following events will raise or lower the equilibrium wage and quantity of coal miners in West Virginia.
What is the rate of return to an investor : What is the rate of return to an investor in the fund during the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
What was the rate of return to an investor in the fund : What was the rate of return to an investor in the fund? (Round your answer to 2 decimal places.)
Sketch a demand and supply diagram : Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans.
Predict the effects on the price and quantity supplied : Imagine that to preserve the traditional way of life in small fishing villages, a government decides to impose a price floor that will guarantee all fishermen.
What happens to the price and the quantity bought : What happens to the price and the quantity bought and sold in the cocoa market if countries producing cocoa experience a drought and a new study is released.

Reviews

Write a Review

Business Economics Questions & Answers

  Database and the security protection mechanisms

Provide operating system security components that will support a database and the security protection mechanisms?

  Recognise and document knowledge

Why is it important to recognise and document knowledge, skills and experience of others in relation to team objectives? (75 words)

  Find the seven uniform annual deposits

Find the 7 uniform annual deposits that can provide a single withdrawal of $43,001.59, 6 years after the last deposit is made at an interest rate of 10.7% per year.

  Calculate the value of the firm

The EBITDA multiple is 9.6, how do you calculate the value of the firm?

  In converting the residual to a student zed

In converting the residual to a student zed (standardized) residual for a given observation, the residual for the observation is divided by the residual's __________.

  The short-run aggregate supply curve slopes

The short-run aggregate supply curve (SRAS) slopes

  Cultural differences from business point

What might you expect in the way of cultural differences from a business point of view if you were to go to France, Saudi Arabia, Brazil or China? What do you think people from France, Saudi Arabia, Brazil or China might expect from American culture.

  Rival firm cuts its price-best strategic response of firm

When a rival firm cuts its price, the best strategic response of the firm, in many cases, is to retaliate with a price cut of its own. What practical advices or tactics would you provide to business executives as to what they can do that won’t land t..

  Firm that holds a global monopoly

Business firm that holds a global monopoly on a particular product but is currently selling the product only in its domestic market where its profits are substantial.

  Define and discuss ethical relativism

Are there any ethical relativism concerns in diversity in the workplace. If so, what are they? If not, why not?

  What is the equilibrium price and quantity in free market

You are a very powerful lobbyist and have convinced your client that you can make them the only legal extractor of coal in the United States and simultaneously make coal imports illegal. What is the equilibrium price and quantity in a free market? On..

  What recommendation a company such as cummins engine

After an unanticipated dollar appreciation has occurred, what recommendation a company such as Cummins Engine to do with its strong domestic currency?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd