A year ago, an investor bought 100 shares of a mutual fund at $7.50 per share. This year, the fund paid dividends of $0.75 per share capital gains of $0.50 per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.20. b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $7.75 per share.
A year ago, an investor bought 100 shares of a mutual fund at $7.50 per share. This year, the fund paid dividends of $0.75 per share capital gains of $0.50 per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.20. b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $7.75 per share.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 7FPE
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![A year ago, an investor bought 100 shares of a mutual fund at $7.50 per share. This year,
the fund paid dividends of $0.75 per share capital gains of $0.50 per share.
a. Find the investor's holding period return, given that this no-load fund now has a
net asset value of $8.20.
b. Find the holding period return, assuming all the dividends and capital gains
distributions are reinvested into additional shares of the fund at an average price
of $7.75 per share.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F25c8a93c-61c4-45a9-bd00-96390932c885%2F70b6ae20-6cb2-48f2-8f8d-f309d4a7ac0a%2F709r2j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A year ago, an investor bought 100 shares of a mutual fund at $7.50 per share. This year,
the fund paid dividends of $0.75 per share capital gains of $0.50 per share.
a. Find the investor's holding period return, given that this no-load fund now has a
net asset value of $8.20.
b. Find the holding period return, assuming all the dividends and capital gains
distributions are reinvested into additional shares of the fund at an average price
of $7.75 per share.
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