A year ago, an investor bought 600 shares of a mutual fund at $7.68 per share. This year, the fund has paid dividends of $0.79 per share and had a capital gains distribution of $0.48 per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.27. 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 $7.76 per share.
A year ago, an investor bought 600 shares of a mutual fund at $7.68 per share. This year, the fund has paid dividends of $0.79 per share and had a capital gains distribution of $0.48 per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.27. 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 $7.76 per share.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A year ago, an investor bought 600 shares of a mutual fund at $7.68 per share. This year, the fund has paid dividends of $0.79 per
share and had a capital gains distribution of $0.48 per share.
a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.27.
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 $7.76 per share.
a. Given that this no-load fund now has a net asset value of $8.27, the investor's holding period return is%. (Round to two
decimal places.)
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