A year ago, the Really Big Growth Fund was being quoted at an NTA of $21.50 and an offer price of $23.35; today it is being quoted at $23.04 (NTA) and $25.04 (offer). What is the holding period return on this listed fund (a) based on NTA values and (b) based on offer prices? Assume that it was purchased a year ago and that its income and capital gains distributions over the year have totalled $1.05 per share? Which HPR would you use to evaluate the fund manager’s performance? Why?

A year ago, the Really Big Growth Fund was being quoted at an NTA of $21.50 and an offer price of $23.35; today it is being quoted at $23.04 (NTA) and $25.04 (offer). What is the holding period return on this listed fund (a) based on NTA values and (b) based on offer prices? Assume that it was purchased a year ago and that its income and capital gains distributions over the year have totalled $1.05 per share? Which HPR would you use to evaluate the fund manager’s performance? Why?

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 8FPE

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