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a mutual fund has 1,000 shares of doggie corp. currently trading at $10, and 500 shares of kitty, inc., currently trading at $15. the fund
a mutual fund has 1,000 shares of doggie corp. currently trading at $10, and 500 shares of kitty, inc., currently trading at $15. the fund has 2,000 shares outstanding. investors expect the price of doggie corp. to increase to $14 and the price of kitty inc. to decline by the end of the year. thus a new nav. assume that the price of doggie corp. shares is realized at $14. what is the maximum price to which kitty inc. can decline and still maintain the original nav?
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