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?

Question

Quizplus · Accepted Answer

The holding period return is calculated as follows:Holding period return = (Sale price + Dividends - Purchase price) / Purchase price= (43 + 1 - 42) / 42= 2 / 42= 0.0476= 4.76%Therefore, the correct answer is A) 4.8%.

Last Year, Sue Purchased a Closed-End Mutual Fund That Was