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Orlov [11]
3 years ago
8

A closed-end fund starts the year with a net asset value of $20. By year-end, NAV equals $20.90. At the beginning of the year, t

he fund is selling at a 4% premium to NAV. By the end of the year, the fund is selling at a 9% discount to NAV. The fund paid year-end distributions of income and capital gains of $2.30.
What is the rate of return to an investor in the fund during the year?
Business
1 answer:
Korvikt [17]3 years ago
4 0

Answer:

2.5%

Explanation:

Price at the beginning = NAV at the beginning × (1 + premium)

= 20 × 1.04 = 20.8

Price at the end = NAV at the end × (1 - premium)

= 20.90 × 0.91 = 19.019

NAV increase by $0.90 but price decrease by 1.781

Returns = (0.91 × 20.90 - 1.04 × 20 + 2.30) ÷ 1.04 × 20

= 0.519 ÷ 1.04 × 20

= 0.0249

= 2.49%

= 2.5%

OR

Returns = change in P + distribution / start of year P

= -1.781 + 2.30 / 1.04 × 20

= 0.519/20.8

= 0.0249

=2.49%

= 2.5%

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As part of thinking about the _____, managers track the Consumer Price Index, manufacturing and retail inventory levels, and con
lana [24]

Answer:

Economic Dimension

Explanation:

Economic dimension implies that the effect of economic factors on a particular circumstance which a company faces are taking into consideration while making a decision.

In the question, the three economic factors mentioned to be considered by the company as part of the economic dimension are Consumer Price Index, manufacturing and retail inventory levels, and consumer confidence measures.

The Consumer Price Index (CPI) measures the weighted average of prices of a basket of commodities like cloth, food, transportation, etc. This is calculated as average of the changes in prices of the chosen basket of goods and services.

Manufacturing inventory are raw material or work-in-progress items kept in stock to produce goods, while retail inventory are the finished goods kept in stock to be sold.

Consumer confidence measure can also be referred to as the Consumer Confidence Index (CCI) and it is the level of assurance which consumers display about general economic condition in a country through the way they spend or save.

How a company monitor and prepare for each of the three factors will determine its success or failure.

4 0
3 years ago
In order for your savings and investments to truly increase in value, what must they do?​ select all that apply
Pie

Answer:

1,3,4

Explanation: Those are the one I would choose.

3 0
3 years ago
What is the present value of a four-year annuity of $100 per year that makes its first payment 2 years from today if the discoun
navik [9.2K]

Answer:

= $356.85

Explanation:

Here's the complete question :

What is the present value of a four-year annuity of $100 per year that makes its first payment 2 years from today if the discount rate is 9%

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow each year in year 0 and 1 = 0

Cash flow each year from year 2 to 6 = $100

I = 9%

PV = $356.85

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

3 0
3 years ago
A ________ is a network of activities for accomplishing a business function.
xeze [42]

Answer:

busness process

Explanation:

3 0
2 years ago
Describe two methods you would use to find potential employees if you were in charge of advertising a job for a company. Explain
likoan [24]

Answer

• Use Employee referral  Programs

• Hire for Attitude and then do training for skills

Explanation

Employees working in your organization can be a valuable source of knowledge need when recruiting. They have friends and acquaintances that are in the same field. Come up with a policy that will enable staff refer suitable candidates for job positions in the company.

A smart recruiter should search for attitude when recruiting employees because skills can be gained. The best candidate should show a positive attitude towards a position with the required skills which is in most cases difficult to find. The technique to employ here as a recruiter is to find a person with a positive attitude towards a job posting.


6 0
3 years ago
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