A year ago, an investor bought 200 shares of a mutual fund at $7.58 per share. This year, the fund has paid dividends of $0.71 per share and had a capital gains distribution of $0.53 per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.19. 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 $7.87 per share. a. Given that this no-load fund now has a net asset value of $8.19, the investor's holding period return is 24.41'%. (Round to two decimal places.) b. Assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $7.87 per share, the holding period return is %. (Round to two decimal places.)
A year ago, an investor bought 200 shares of a mutual fund at $7.58 per share. This year, the fund has paid dividends of $0.71 per share and had a capital gains distribution of $0.53 per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.19. 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 $7.87 per share. a. Given that this no-load fund now has a net asset value of $8.19, the investor's holding period return is 24.41'%. (Round to two decimal places.) b. Assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $7.87 per share, the holding period return is %. (Round to two decimal places.)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 7FPE
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![A year ago, an investor bought 200 shares of a mutual fund at $7.58 per share. This year, the fund has paid dividends of $0.71 per share and had a capital gains distribution of $0.53 per share.
a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.19.
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 $7.87 per share.
a. Given that this no-load fund now has a net asset value of $8.19, the investor's holding period return is 24.41 %. (Round to two decimal places.)
b. Assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $7.87 per share, the holding period return is %. (Round to two decimal places.)
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Transcribed Image Text:A year ago, an investor bought 200 shares of a mutual fund at $7.58 per share. This year, the fund has paid dividends of $0.71 per share and had a capital gains distribution of $0.53 per share.
a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.19.
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 $7.87 per share.
a. Given that this no-load fund now has a net asset value of $8.19, the investor's holding period return is 24.41 %. (Round to two decimal places.)
b. Assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $7.87 per share, the holding period return is %. (Round to two decimal places.)
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