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Posted on Jul 13, 2024

av/pid-3182060-dt-content-rid-27670978_1/courses/212023015/Homework%20%236.pdf 2-On January 1st, a mutual fund has the following assets and prices at 4:00p.m.: Stock Shares owned Price 1 1,000 $ 1.97 2 5,000

av/pid-3182060-dt-content-rid-27670978_1/courses/212023015/Homework%20%236.pdf 2-On January 1st, a mutual fund has the following assets and prices at 4:00p.m.: Stock Shares owned Price 1 1,000 $ 1.97 2 5,000 $48.26 3 1,000 $26.44 4 10,000 $67.49 5 3,000 $ 2.59 a) Calculate the net asset value (NAV) for the fund. Assume that 8,000 shares are outstanding for the fund. b) An investor sends the fund a check for $50,000. If there is no front-end load, calculate the new number of shares and price/share. Assume the manager purchases 1,800 shares of stock 3, and the rest is held as cash. c) On January 2nd, the prices at 4:00 PM are: Stock Shares owned Price 1 1,000 $ 2.03 2 5,000 $51.37 3 2,800 $29.08 4 10,000 S67.19 5 3,000 S 4.42 cash S 2408 Calculate the net asset value (NAV) for the fund. d) Assume the new investor then sells the 420 shares. What is his profit? What is the daily return? The fund sells 800 shares of stock 4 to raise the needed funds, what is the composition of the fund now? AN n/a MacBook Air DOO COD FE F F2 e) To discourage short-term investing in its fund, the fund now charges a 5% upfront load and a 2% backend load. The same investor decides to put $50,000 back into the fund. Calculate the new number of shares outstanding. Assume the fund manager buys back as many round-lot shares of stock 4 with the cash. (round lot is 100 shares) f) On January 3rd, the prices at 4:00 PM are: Stock Shares owned Price 1,000 $ 1.92 2 5,000 $ 51.18 3 2,800 $ 29.08 9,900 $ 67.19 3,000 $ 4.51 cash n/a. $5,353.40 Calculate the new NAV. g) Unhappy with the results, the new investor then sells the 389.09 shares. What is his profit? What is the new fund value? (remember the back-end load) av/pid-3182060-dt-content-rid-27670978_1/courses/212023015/Homework%20%236.pdf 2-On January 1st, a mutual fund has the following assets and prices at 4:00p.m.: Stock Shares owned Price 1 1,000 $ 1.97 2 5,000 $48.26 3 1,000 $26.44 4 10,000 $67.49 5 3,000 $ 2.59 a) Calculate the net asset value (NAV) for the fund. Assume that 8,000 shares are outstanding for the fund. b) An investor sends the fund a check for $50,000. If there is no front-end load, calculate the new number of shares and price/share. Assume the manager purchases 1,800 shares of stock 3, and the rest is held as cash. c) On January 2nd, the prices at 4:00 PM are: Stock Shares owned Price 1 1,000 $ 2.03 2 5,000 $51.37 3 2,800 $29.08 4 10,000 S67.19 5 3,000 S 4.42 cash S 2408 Calculate the net asset value (NAV) for the fund. d) Assume the new investor then sells the 420 shares. What is his profit? What is the daily return? The fund sells 800 shares of stock 4 to raise the needed funds, what is the composition of the fund now? AN n/a MacBook Air DOO COD FE F F2 e) To discourage short-term investing in its fund, the fund now charges a 5% upfront load and a 2% backend load. The same investor decides to put $50,000 back into the fund. Calculate the new number of shares outstanding. Assume the fund manager buys back as many round-lot shares of stock 4 with the cash. (round lot is 100 shares) f) On January 3rd, the prices at 4:00 PM are: Stock Shares owned Price 1,000 $ 1.92 2 5,000 $ 51.18 3 2,800 $ 29.08 9,900 $ 67.19 3,000 $ 4.51 cash n/a. $5,353.40 Calculate the new NAV. g) Unhappy with the results, the new investor then sells the 389.09 shares. What is his profit? What is the new fund value? (remember the back-end load)