(A) Adequate information: Opening NAV of the fund - $ 12 Closing NAV of the fund- $ 12.10 Income distributed during the year - $ 1.50 At the beginning of the year fund is selling at 2% premium At the end of the year fund is selling at 7% discount To compute: i) rate of return to investor in fund Introduction: Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

Question

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Answer 1

Question

Chapter 4, Problem 13PS

Summary Introduction

(A)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:i) rate of return to investor in fund

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

Summary Introduction

(B)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:rate of return to investor who held securities as fund manager

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

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Answer 2

Question

Chapter 4, Problem 13PS

Summary Introduction

(A)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:i) rate of return to investor in fund

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

Summary Introduction

(B)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:rate of return to investor who held securities as fund manager

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

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Answer 3

Question

Chapter 4, Problem 13PS

Summary Introduction

(A)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:i) rate of return to investor in fund

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

Summary Introduction

(B)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:rate of return to investor who held securities as fund manager

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

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Answer 4

Question

Chapter 4, Problem 13PS

Summary Introduction

(A)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:i) rate of return to investor in fund

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

Summary Introduction

(B)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:rate of return to investor who held securities as fund manager

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

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Answer 5

Chapter 4, Problem 13PS

Summary Introduction

(A)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:i) rate of return to investor in fund

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

Summary Introduction

(B)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:rate of return to investor who held securities as fund manager

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

Answer 6

Chapter 4, Problem 13PS

Summary Introduction

(A)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:i) rate of return to investor in fund

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

Answer 7

Chapter 4, Problem 13PS

Summary Introduction

(A)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:i) rate of return to investor in fund

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

Answer 8

Summary Introduction

(B)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:rate of return to investor who held securities as fund manager

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

Answer 9

Summary Introduction

(B)

Adequate information:

Opening NAV of the fund - $ 12

Closing NAV of the fund- $ 12.10

Income distributed during the year - $ 1.50

At the beginning of the year fund is selling at 2% premium

At the end of the year fund is selling at 7% discount

To compute:rate of return to investor who held securities as fund manager

Introduction:

Total return to the investor in fund during a particular period is the sum total of change in the selling price (i.e. NAV after premium or discount) of the fund during the period and income distributed during the period.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 4 - Prob. 1PS Ch. 4 - Prob. 2PS Ch. 4 - Prob. 3PS Ch. 4 - Prob. 4PS Ch. 4 - Prob. 5PS Ch. 4 - Prob. 6PS Ch. 4 - Prob. 7PS Ch. 4 - Prob. 8PS Ch. 4 - Prob. 9PS Ch. 4 - Prob. 10PS

Solution Summary: The author explains the calculation of return to the investor as a fund manager.

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Chapter 4 Solutions