In the Wall Street Journal, open-end mutual funds are listed separately from other securities. They have their own quotation system where the primary data variables are the net asset value (NAV) and the year-to-date returns. The NAV represents the price you get when you sell shares, or what you pay when you buy no-load funds.

Create a spreadsheet model similar to the spreadsheet for Table 12.2, which you can view at http://www.myfinancelab.com, to analyze the following three years of data relating to the MoMoney Mutual Fund. It should report the amount of dividend income and capital gains distributed to the shareholders, along with any other changes in the fund’s net asset value (b = 0.50).

Questions

a. What is the total income from the investment operations?

b. What are the total distributions from the investment operations?

c. Calculate the net asset value for MoMoney Fund as of the end of the years 2016, 2015, and 2014.

d. Calculate the holding period returns for each of the years 2016, 2015, and 2014.

Transcribed Image Text:

B D E 2016 2015 2014 35.24 $ 37.50 $ 36.25 0.65 $ 0.75 $ 0.60 5.25 $ 4.75 $ (3.75) 0.61 $ 0.57 $ 0.52 1.75 $ 2.01 $ 1.55 $$$$$ 1 2 NAV (beginning of period) 3 Net investment income 4 5 6 7 Net gains on securities Dividends from net investment income Distributions from realized gains