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A mutual fund has the following assets and liabilities: Sh'000' Stock (at current market value) 20,000 Bonds (at current market value) 10,000 Cash 500 Liabilities
A mutual fund has the following assets and liabilities:
Sh'000'
Stock (at current market value) 20,000
Bonds (at current market value) 10,000
Cash 500
Liabilities 300
After one year, the value of the stock portfolio held by the mutual fund rises by 10% and the value of the bond portfolio falls by 2%. The cash and liabilities remain unchanged. The shares outstanding are 10 million Required: The yield on investment on the mutual fund (2 mks)
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