A year ago, an investor bought
500500
shares of a mutual fund at
$7.667.66
per share. This year, the fund has paid dividends of
$ 0.75$0.75
per share and had a capital gains distribution of
$0.450.45
per share.
a. Find the investor's holding period return, given that this no-load fund now has a net asset value of
$8.188.18.
b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of
$7.827.82
per share.