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1. Year-end prices and dividends for Nopat Mutual Fund for each of six years are listed below along with the actual yield (return) on a

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1. Year-end prices and dividends for Nopat Mutual Fund for each of six years are listed below along with the actual yield (return) on a money market fund called Emfund. 2004 2005 2006 2007 2008 2009 Nopat Fund Year-End Price $28.50 $26.80 $29.60 $31.40 $34.50 $37.25 Nopat Fund Year. Nopat Annual Holding Emfund Return End Dividend Period Return for the Year $0.14 3.00% $0.15 4.00% $0.17 4.30% $0.17 ? 5.00% $0.19 4.10% $0.22 6.00% Average risk-free rate over the five years 2005 - 2009 is 2.8%. Risk-free rate for 2004 is 2.8%. A. Calculate the annual holding period returns for a beginning-of-year investment in Nopat fund for each of the five years over the period 2005- 2009 (% with two decimal places). What is the arithmetic mean annual total return on an investment in Nopat fund shares (dividends reinvested) over the period 20052009? C. What is the average compound annual rate of return on an investment in Nopat fund made at year end 2004 if it were held (dividends reinvested) until the end of 2009 B. 1. Year-end prices and dividends for Nopat Mutual Fund for each of six years are listed below along with the actual yield (return) on a money market fund called Emfund. 2004 2005 2006 2007 2008 2009 Nopat Fund Year-End Price $28.50 $26.80 $29.60 $31.40 $34.50 $37.25 Nopat Fund Year. Nopat Annual Holding Emfund Return End Dividend Period Return for the Year $0.14 3.00% $0.15 4.00% $0.17 4.30% $0.17 ? 5.00% $0.19 4.10% $0.22 6.00% Average risk-free rate over the five years 2005 - 2009 is 2.8%. Risk-free rate for 2004 is 2.8%. A. Calculate the annual holding period returns for a beginning-of-year investment in Nopat fund for each of the five years over the period 2005- 2009 (% with two decimal places). What is the arithmetic mean annual total return on an investment in Nopat fund shares (dividends reinvested) over the period 20052009? C. What is the average compound annual rate of return on an investment in Nopat fund made at year end 2004 if it were held (dividends reinvested) until the end of 2009 B

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