Question
A mutual fund has 400 shares of General Electric, currently trading at $16, and 400 shares of Microsoft, Incorporated, currently trading at $28. The fund
A mutual fund has 400 shares of General Electric, currently trading at $16, and 400 shares of Microsoft, Incorporated, currently trading at $28. The fund has 1,000 shares outstanding.
What is the NAV of the fund?
| $17.60 | ||
| $18.20 | ||
| $16.90 | ||
| $18.70 |
Assume that the price of General Electric shares is realized at $20 by the end of year. What is the maximum price to which Microsoft can decline and still maintain the original NAV?
| $22 | ||
| $30 | ||
| $28 | ||
| $24 |
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Routledge Handbook Of Social And Sustainable Finance
Authors: Othmar M. Lehner
1st Edition
1138343773, 978-1138343771
