You are evaluating a closed-end mutual fund and see that its price is different from its net asset value (NAV). The fund has an expense ratio (ε) of 2.80% and a dividend yield (O) of 4.00%. The fund has experienced a risk-adjusted abnormal return (a) of 3.40%. By what amount (premium or discount) is the fund likely to trade relative to its NAV? Note: Use a minus sign if the amount is a discount. Round your answer to 2 decimal places. Amount 0.99 %
You are evaluating a closed-end mutual fund and see that its price is different from its net asset value (NAV). The fund has an expense ratio (ε) of 2.80% and a dividend yield (O) of 4.00%. The fund has experienced a risk-adjusted abnormal return (a) of 3.40%. By what amount (premium or discount) is the fund likely to trade relative to its NAV? Note: Use a minus sign if the amount is a discount. Round your answer to 2 decimal places. Amount 0.99 %
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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