One year ago, Sahara Closed-End Fund had a NAV of Rs. 10.50 and was selling at an 10% discount. Today, its NAV is Rs. 12 and it is priced at a 5%…
BBS Fundamentals of Investment · 2078 · Solved Question with Answer
One year ago, Sahara Closed-End Fund had a NAV of Rs. 10.50 and was selling at an 10% discount. Today, its NAV is Rs. 12 and it is priced at a 5% premium. During the year Sahara distributed dividends and capital gains of Rs. 1.5. One the basis of the given information, calculate each of the following.
a. Sahara's NAV-based holding period return for the year.
b. Sahara's market-based holding period return for the year. Did the market premium/discount hurt or add value to the investor's return?