Question
In: Finance
A closed-end fund starts the year with a net asset value of $22. By year-end, NAV...
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A closed-end fund starts the year with a net asset value of $22. By year-end, NAV equals $23.10. 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 $2.50. |
| 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 | % | |
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jeff jeffy answered 8 months agoRelated Solutions
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