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You invest in an Open-End fund and you want to compute your Holding Period Return. At the beginning of the period, the fund has $50M
You invest in an Open-End fund and you want to compute your Holding Period Return. At the beginning of the period, the fund has $50M in assets, $4M in debt, and 54M in shares. At the end of the period, the fund has $51M in assets, $3M in debt, and 54M in shares. Over the period, the fund distributed $0.07 in dividends. What is your HPR? [The holding period return for an Open-End fund is computed using the NAV, which simply represents the price per share, and the various cash flows that can occur. In this course, we do not cover the fees for Open-End funds. You will learn about them in Securities Analysis. The HPR for Open-End fund is computed the same way you would compute the HPR for a stock, except that you use NAV instead of Stock price.] {Keep many decimals for your NAVs when computing the HPR. Enter you answer as percentage with 2 decimals.}
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