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that he exits the investment at the current offer price of $8.50 and a NAV $8.70 per unit? Select one: O a. 13.33% O b. 36.00% O c. 44.44% O d. 20.83% per share.

that he exits the investment at the current offer price of $8.50 and a NAV $8.70 per unit? Select one: O a. 13.33% O b. 36.00% O c. 44.44% O d. 20.83% per share.

Essentials Of Investments
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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Last year at this time, Michael Ring bought 100 units of a managed fund when the price was $7.50 per unit and the net asset value (NAV) was $7.20 per unit. Over the past year the fund had income distribution of 90 cents per share and a capital gain distribution of 80 cents per share. What would be Michael's holding period return assuming that he exits the investment at the current offer price of $8.50 and a NAV $8.70 per unit? Select one: O a. 13.33% Ob. 36.00 % О с. 44.44% O d. 20.83%
Transcribed Image Text:Last year at this time, Michael Ring bought 100 units of a managed fund when the price was $7.50 per unit and the net asset value (NAV) was $7.20 per unit. Over the past year the fund had income distribution of 90 cents per share and a capital gain distribution of 80 cents per share. What would be Michael's holding period return assuming that he exits the investment at the current offer price of $8.50 and a NAV $8.70 per unit? Select one: O a. 13.33% Ob. 36.00 % О с. 44.44% O d. 20.83%
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