Intro A mutual fund owns the following stocks: 17,000 shares of General Electric, 24,000 shares of IBM, and 64,000 shares of Exxon Mobile. The fund has to pay back-wages of $450,000 (an accured liability), and has issued 2 million shares to mutual fund shareholders. The fund will receive a dividend of $10 per share from its holdings of General Electric stock in two weeks, which the fund manager will reinvest by buying more shares of GE. Ignore tax effects. The stock prices for GE, IBM, and Exxon are as follows, respectively: IBM GE 605 Exxon 244 Time 10am on day 1 End of day 1 14 days later 149 144 608 251 242 614 142 Part 1 Attempt 1/5 for 10 pts. What is the value of the fund's holdings of Exxon at the end of day 1? 16064000 Correct Attempt 175 for 10 pts. Part 2 What is the total NAV (not per share) at the end of day 1? 29406000 Correct We need to calculate the value for GE and IBM, too: VGE = PGE * QGE = 608 * 17,000 = 10,336,000 Vi = P. * Q1 = 144 * 24,000 = 3,456,000. Total net asset value: NAV = VE + VGE + V - Liabilites = 16,064,000 + 10,336,000 + 3,456,000 -450,000 = 29,406,000 * Attempt 1/5 for 10 pts. Part 3 What is the NAV per share at the end of the day? 14.703 Correct Part 4 * Attempt 1/5 for 10 pts. If you place an order to buy 100 shares in the fund at 10am on day 1, how much will you have to pay in total? 1470.3 Correct Shares in mutual funds are sold (and bought back) at the NAV at day's end (after the end of trading). You have to pay 100 * $14.7 = $1,470.3. Part 5 Attempt 2/5 for 9 pts. What's the return to an investor if they submit a buy order at 10am on day 1 and then hold for 14 days? Back wages are now $360,000 after 2 weeks. 4+ decimals