a) A mutual fund company has the following assets & liabilities: 31 July 2019

Equities (at market value)	40,000,000
Bonds (at market value)	20,000,000
Cash	15,000,000
Total Value of Assets	75,000,000
Liabilities	50,000,000
Number of Shares Outstanding	10,000,000

Required:

i) What is NAV and why do investors need to track this? Be sure yur answer details both a premium and discount to NAV when considering the market price. Determine the Net Asset Value (NAV) of this fund.

ii) By the end of September 2020, the value of the equity stock fell 20% and the value of the bonds rose 5%. At the same time, the value of the funds liabilities rose 5%. The cash position remained unchanged and the number of shares outstanding increased by 400%. Present a schedule of the assets & liabilities. Calculate the NAV of the fund by the end of the year.

c) A hedge fund charges 2 plus 20%. Investors require a return of 10%. What is the hedge fund's minimum return before fees to provide investors with their required rate of return?