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Business, 06.03.2020 17:48 LeahAshe123

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 (ε) of 2.80% and a dividend yield (δ) of 4.00%. The fund has experienced a risk-adjusted abnormal return (α) of 3.80%. By what amount (premium or discount) is the fund likely to trade relative to its NAV?

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