GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
11th Edition
ISBN: 9781260201550
Author: Bodie
Publisher: MCG
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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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