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An investment fund has $10 million in securities and 10 million shares outstanding. The fund experiences unanticipated withdrawals and 1 million shares are sold back
An investment fund has $10 million in securities and 10 million shares outstanding. The fund experiences unanticipated withdrawals and 1 million shares are sold back to the fund; as a consequence the fund is forced to sell $1 million worth of securities at 10% below market value. What is the NAV after the sale of securities and redemption of fund shares?
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