A year​ ago, an investor bought 400 shares of a mutual fund at ​$7.52 per share. This​ year, the fund has paid dividends of $0.77 per share and had a capital gains distribution of ​$0.53 per share. a. Find the​ investor's holding period​ return, given that this​ no-load fund now has a net asset value of ​$8.15. 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 ​$7.82 per share.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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A year​ ago, an investor bought 400 shares of a mutual fund at ​$7.52 per share. This​ year, the fund has paid dividends of $0.77 per share and had a capital gains distribution of ​$0.53 per share.
a. Find the​ investor's holding period​ return, given that this​ no-load fund now has a net asset value of
​$8.15.
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 ​$7.82 per share.
 
 
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