Question
The Well-Managed Closed-End Fund turned in the following performance for the year 2016: . Item Beginning of the Year End of the Year NAV 7.58
The Well-Managed Closed-End Fund turned in the following performance for the year 2016: .
Item Beginning of the Year End of the Year
NAV 7.58 9.26
Market price of the fund shares 7.84 9.03
Dividends paid over the year 0.00 1.23
Capital gains distributed over the year 0.00 0.87
a. Based on this information, what was the NAV-based HPR for the WMCEF in 2016?
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. Note: For a discount enter a negative value.
c. What was the market-based HPR for the fund in 2016? Did the market premium or discount add to or hurt the holding period return on this CEF? Explain.
a. The NAV-based HPR for the WMCEF in 2016 is %. (Round to two decimal places.)
b. The premium (or discount) at the beginning of the period was %. (Round to two decimal places. Enter a premium as a positive number and a discount as a negative number.)
b. (2) The premium (or discount) at the end of the period was %. (Round to two decimal places.)
c. The market-based HPR for the fund in 2016 is %. (Round to two decimal places.) The market premium (increased /reduced) the purchase price, and the market discount (increased/ reduced) the sale price. Therefore, it (added to/ hurt) the investor's holding period return.
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