Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Check my work 4 Open-end Fund A has 179 shares of ATT valued at $42 each and 37 shares of Toro valued at $82 each.
Check my work 4 Open-end Fund A has 179 shares of ATT valued at $42 each and 37 shares of Toro valued at $82 each. Closed-end Fund B has 82 shares of ATT and 79 shares of Toro. Both funds have 1,000 shares outstanding. 2 points a. What is the NAV of each fund using these prices? (Round your answers to 3 decimal places. (e.g., 32.161)) b. If the price of ATT stock increases to $43.25 and the price of Toro stock declines to $79.292, how does that impact the NAV of both funds? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) c. Assume that another 162 shares of ATT valued at $42 are added to Fund A. The funds needed to buy the new shares are obtained by selling 645 more shares in Fund A. What is the effect on Fund A's NAV if the prices remain unchanged from the original prices? eBook References a. NAV of Fund A NAV of Fund B % b. Percentage change in NAV Fund A Percentage change in NAV Fund B c. Percentage change in NAV Fund A % %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started