Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you are evaluating a closed-end mutual fund and se

You are evaluating a closed-end mutual fund and see that its price is different from...

60.1K

Verified Solution

Question

Accounting

image

You are evaluating a closed-end mutual fund and see that its price is different from its net asset value (NAV). The fund has an expense ratio () of 2.80% and a dividend yield () of 4.00%. The fund has experienced a risk-adjusted abnormal return (a) of 2.20%. By what amount (premium or discount) is the fund likely to trade relative to its NAV? (Use a minus sign if the amount is a discount. Round your answer to 2 decimal places.) Amount

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students