Question
The Well Managed Closed-End Fund turned in the following performance for the year 2010. Item 1. NAV 2. Market price of the fund shares 3.
The Well Managed Closed-End Fund turned in the following performance for the year 2010. Item 1. NAV 2. Market price of the fund shares 3. Dividends paid over the year 4. Capital gains distributed over the year
Beginning of the Year 1. $7.50 2. $7.75 3. -----
4. -----
End of the Year 1. $9.25 2. $9.00 3. $1.20 4. $0.90
a. Based on this information, what was the NAV-based HPR for the WMCEF in 2010? b. Find the percentage (%) premium or discount at which the fund was trading at the beginning of the year and at the end of the year. c. What was the market-based HPR for the fund in 2010? Did the market premium or discount add to or hurt the holding period return on this CEF? Explain.
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