Question

PLEASE HELP WITH ENTIRE EXERCISE

A) You invested $50,000 in a mutual fund at the beginning of the year when the NAV was $68.23. At the end of the year, the fund paid $0.32 in short-term distributions and $0.49 in long-term distributions. If the NAV of the fund at the end of the year was $72.59, what was your return for the year?

B)
A closed-end fund has total assets of $510 million and liabilities of $290,000. Currently, 29 million shares are outstanding. What is the NAV of the fund? If the shares currently sell for $18.10, what is the premium or discount on the fund? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round the NAV answer to 2 decimal places. Enter the premium or discount as a percent rounded to 2 decimal places.) Net asset value Premium(discount)

Answer 1

A)
the formula Total reruen se calculated by (Dt (NAV and NAVstay) x 100 NAV Start Hele D = Divideud declared for the - NAV Start- NAV at the beginning period NAV end - NAV at end of the - periode welding period of molding modeling Here 0 = $0.32 NAVend = $72.59 Navstaure $ 68.23. Putting ones value cui que formula we get= 0.32 + (72.59 - 68.23) 7x100 68.23 20 g 0.32 + 4.36 X100 68.23 4.68 XIOO 68-23 s 6.86 % ce u= 50,000 X 6.86. Return for the year = 50. - $ 3430
B)
NAV = HR Assers - liabilities Мед а акацdRusa 510,000 000 - о, ооо 24, Ооо, ооо = _ ~ $ 1. 5+62. 54 $ (т. 58 Price = Share NJA U $18.00 - 47-58 Premium ou - one fund 18 -10 - 11c8 +$ 0.52 Фкем » Со решь О. S2 хоо 14.58 - = 2. Ч 71 1. 2. 9. 1.

Assets Assets Average sold = $ 148 million rucuased $118 million daily assets- $456 million Funds twinouee Mano - of Meulinum Average assets bought a sold daily assets 118,000,000 456,000,000 = 0.258 77 0.25877 XLOO 25.877 ./. 25.88 /. = fund turnover - 25.881.

NAV= Assers - liabilities Number of outstanding herits Asseos - 15,500 x 79 + 31,000 + 2a + 7500 x5t 73,000 X 15 t = 1,22u, oo t 899,000 + 427,500 + 1,095,000 = 3,646,000 NAV - 3646,000 - 1,38,000 48.00 43.0833 Frout end load - 2.75%. As a decenas 0.0275 Subtracting get from I we hout ever love ) 1 0.0275 -) 0.9725 & Dividing public NAV by offer value, we'll wus price get 73.0833 0.9725 75. 1499 & $75.15 Price = 8.75.15 . offering