One year ago, Super Star Closed-End Fund had an NAV of $10.40 and was selling at an

18% discount. Today, its NAV is Sl 1.69 and it is priced at a 4% premium. During the

year, Super Star paid dividends of $0.40 and had a capital gains distribution of $0.95. On

the basis of this information, calculate each of the following:

a. Super Star's NAV-based holding period return for the year.

b. Super Star's market-based holding period return for the year. Did the market premium/discount hurt or add value to the investor's return? Explain.

c. Repeat the market-based holding period return calculation, except this time assume

the fund started the year at an 18% premium and ended it at a 4% discount. (Assume

the beginning and ending NAVs remain at $10.40 and Sl 1.69, respectively.) Is there

any change in this measure of return? Why?