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A mutual fund owns 1,000 shares of Apple and 500 shares of GE. The fund has 5,000 shares outstanding. Below are the Day 1 and

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A mutual fund owns 1,000 shares of Apple and 500 shares of GE. The fund has 5,000 shares outstanding. Below are the Day 1 and Day 2 stock prices for each firm. Calculate the NAV at the end of Day 1. At the end of Day 1, the fund issues 1,000 new shares to investors at the NAV. The proceeds from selling these shares are invested in GE at the Day 1 price. Calculate the, NAV at the end of Day 2. The NAV is $21.00 at the end of Day 1 and $18.07 at the end of Day 2 The NAV is $20.00 at the end of Day 1 and $22.10 at the end of Day 2 The NAV is $18.00 at the end of Day 1 and $22.10 at the end of Day 2 The NAV is $20.00 at the end of Day 1 and $18.42 at the end of Day 2

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