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A mutual fund owns 2,000 shares of 3MCo. and 2,500 shares of PepsiCo, Inc. The fund has 14,000 shares outstanding. Stock prices for Day 1

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A mutual fund owns 2,000 shares of 3MCo. and 2,500 shares of PepsiCo, Inc. The fund has 14,000 shares outstanding. Stock prices for Day 1 and Day 2 are given below. At the end of Day 1 , investors buy 622 shares of the fund at the NAV. Which of the following options will give the fund manager the highest NAV at Day 2? (Reminder: The shares of 3M and Pepsi are bought at the Day 1 price). Invest all the proceeds into 3M stock Invest 50% of the proceeds into Pepsi stock and 50% into 3M stock Invest all the proceeds into Pepsi stock Invest 13% of the proceeds into Pepsi stock and 87% into 3M stock

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