1. It is a premium, because its net assets are 2.4 billion, the net value per share is 1.2 yuan, and the transaction price is 1 yuan, so the premium rate is 20%, which means it is cheaper in the secondary market.

2. Judging from your description of the problem, the net value of fund units is still 1.2 yuan. On January 1, 2002, investors had 1 unit, but by 2003, there were 2 units. In June of this year, its market value should be 2.4 yuan plus the dividend distributed of 0.2 yuan, that is, the total value is 2.6 yuan.

Its cost is 1.1+1.2=2.3 yuan, so the weighted rate of return is 13%