Chapter 12

1. Two mutual funds are quoted as follows.

Given these quotes, which one of the following is true?

C) Fund B is a no-load fund.

Last year, Sue purchased a closed-end mutual fund that was trading at $42 and had an NAV of $38. Sue sold the fund today when the NAV is $44 and the market price is $43. The fund paid $1 in dividends over the past year. What is the Sue's holding period return?

A) 4.8%

B) 7.1%

C) 11.6%

D) 18.4%

Last year at this time, a mutual fund had an NAV of $26.40 per share. Over the past year the fund paid dividends of $1.40 per share and had a capital gains distribution of $1.20 per share. What is the holding period return assuming that the current NAV is $28.84?

C) 19.1%

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