A year ago, the Constellation Fund was being quoted at an NAV of $27.16 and an offer price of $28.40; today, it's being quoted at $28.08 (NAV) and $28.70 (offer). Use the approximate yield formula or a financial calculator to find the rate of return on this load fund; it was purchased a year ago, and its dividends and capital gains distributions over the year totaled $1.96 a share. (Hint: As an investor, you buy fund shares at the offer price and sell at the NAV.) Do not round intermediate calculations. Round the answer to two decimal places. %

A year ago, the Constellation Fund was being quoted at an NAV of $27.16 and an offer price of $28.40; today, it's being quoted at $28.08 (NAV) and $28.70 (offer). Use the approximate yield formula or a financial calculator to find the rate of return on this load fund; it was purchased a year ago, and its dividends and capital gains distributions over the year totaled $1.96 a share. (Hint: As an investor, you buy fund shares at the offer price and sell at the NAV.) Do not round intermediate calculations. Round the answer to two decimal places. %

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 8FPE

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