A mutual fund owns 300 shares of General Electric, currently trading at $30, and 400 shares of Microsoft, Inc., currently trading at $54. The fund has 1,000 shares outstanding.

a. What is the net asset value (NAV) of the fund?

b. If investors expect the price of General Electric shares to increase to $34 and the price of Microsoft shares to decrease to $48 by the end of the year, what is the expected NAV at the end of the year?

c. Assume that the expected price of the General Electric shares is realized at $34. What is the maximum price decrease that can occur to the Microsoft shares to realize an end-of-year NAV equal to the NAV estimated in part (a)?