Last year at this time, Michael Ring bought 100 units of a managed fund when the price was $7.50 per unit and the net asset value (NAV) was $7.20 per unit. Over the pastyear the fund had income distribution of 90 cents per share and a capital gain distribution of 80 cents per share. What would be Michael's holding period return assumingthat he exits the investment at the current offer price of $8.50 and a NAV $8.70 per unit?Select one:O a. 13.33%Ob.36.00 %О с.44.44%O d. 20.83%

NAV is net asset value and is small unit of mutual funds that are available in the market for buying…

Answered: that he exits the investment at the…

that he exits the investment at the current offer price of $8.50 and a NAV $8.70 per unit? Select one: O a. 13.33% O b. 36.00% O c. 44.44% O d. 20.83% per share.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

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 7FPE

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Question

Last year at this time, Michael Ring bought 100 units of a managed fund when the price was $7.50 per unit and the net asset value (NAV) was $7.20 per unit. Over the past
year the fund had income distribution of 90 cents per share and a capital gain distribution of 80 cents per share. What would be Michael's holding period return assuming
that he exits the investment at the current offer price of $8.50 and a NAV $8.70 per unit?
Select one:
O a. 13.33%
Ob.
36.00 %
О с.
44.44%
O d. 20.83%

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