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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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andrey2020 [161]

Answer:

<h2>In this case,visit to the Butchart Garden is an excludable and non-rivalrous good and is an example of a Club Good.</h2>

Explanation:

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Secondly,as Butchart Garden is a public area and anyone who pays the admission fee can officially gain access to the garden,enjoyment of the natural and aesthetic beauty of the garden by any one visitor does not reduce the simultaneous enjoyment of any other visitor who has paid the admission fee and hence,gained access to the garden.In economic language,if we consider the garden visit as a particular commodity,then the consumption of the commodity by any one visitor or consumer does not reduce the simultaneous consumption of any other visitor/s or consumer/s,provided that they have all paid the admission fee to gain access to the commodity or garden in this case.Therefore,visits to the Butchart Garden can be considered as non-rivalrous.

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3 years ago
Which pharmaceuticals company has decided to expand its vaccine business in the United Kingdom with an investment of £240 millio
Volgvan

Answer:

Which pharmaceuticals company has decided to expand its vaccine business in the United Kingdom with an investment of £240 million?

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2 years ago
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Four years ago, Velvet Purses purchased a mailing machine at a cost of $154808. This equipment is currently valued at $25955 on
AVprozaik [17]

Answer:

the book value of the shareholder equity is $53,413

Explanation:

The computation of the book value of the shareholder equity is shown below;

Book value of shareholders equity is

= Book value of mailing + net working capital - Long term debt

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The following T-account is a summary of the cash account of Kingbird Company. Cash (Summary Form) Balance, Jan. 1 7,200 Receipts
lisov135 [29]

Answer:

$264,600

Explanation:

The computation of net cash provided (used) by financing activities is shown below:-

Net cash inflow (Cash provided) by financing activities =  Proceeds from bond issue - Dividend Paid

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= $264,600

Therefore for computing the net cash provided (used) by financing activities we simply applied the above formula.

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Some advocates of behavioral finance agree with efficient market advocates that indexing is theoptimal investment strategy for m
denis-greek [22]

Answer:

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Explanation:

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