a. An investor purchases shares in a no load mutual fund for its net asset value of $26 and during the year receives cash distributions of $1. After one year the investor redeems the shares for $32. What is the percentage return on the investment?

a. and
b. The net asset value of shares in a closed-end investment company is $26. An investor buys the shares for $23 in the secondary market. During the year the company distributes $1. After one year, the net asset rises to $32, and the investor sells the shares for $34 in the secondary market. What is the percentage return on the investment?

b., the net asset value rises from $26 to $32 and the company distributed $1. Why are the percentage returns different?

c. In both

Question

​a. An investor purchases shares in a no load mutual fund for its net asset value of $26 and during the year receives cash distributions of $1. After one year the investor redeems the shares for $32. What is the percentage return on the investment?
​
a. and
b. The net asset value of shares in a closed-end investment company is $26. An investor buys the shares for $23 in the secondary market. During the year the company distributes $1. After one year, the net asset rises to $32, and the investor sells the shares for $34 in the secondary market. What is the percentage return on the investment?
​
b., the net asset value rises from $26 to $32 and the company distributed $1. Why are the percentage returns different?
​
c. In both

Quizplus · Accepted Answer

The Answer of ​a. An investor purchases shares in a no load mutual fund for its net asset value of $26 and during the year receives cash distributions of $1. After one year the investor redeems the shares for $32. What is the percentage return on the investment?
​
a. and
b. The net asset value of shares in a closed-end investment company is $26. An investor buys the shares for $23 in the secondary market. During the year the company distributes $1. After one year, the net asset rises to $32, and the investor sells the shares for $34 in the secondary market. What is the percentage return on the investment?
​
b., the net asset value rises from $26 to $32 and the company distributed $1. Why are the percentage returns different?
​
c. In both

​A an Investor Purchases Shares in a No Load Mutual

A an Investor Purchases Shares in a No Load Mutual