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A year ago, an investor bought 600 shares of a mutual fund at $7.56 per share. This year, the fund has paid dividends of $0.76
A year ago, an investor bought 600 shares of a mutual fund at $7.56 per share. This year, the fund has paid dividends of $0.76 per share and had a capital gains distribution of $0.51 per share.
a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.11.
b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $7.77 per share.
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