Nov 20 2020 1:48:34 PM NAV WITH INCREASE IN SHARES Suppose the fund above issues 1,000 additional shares at an NAV of $15.402. This means the fund has an additional $15,402 to invest. The manager decides to use these additional funds to buy Sears. If the price is currently at $22, how many shares will they buy? $15,402/22= 700 Now the portfolio has 4,700 shares of Sears, 1.200 of Exxon still at $78, and 1,500 of AT&T at $35. Total shares are 16,000. What is the NAV? Assignment Question #2 Suppose a MF contains 4,000 of Sears Roebuck currently trading at $22, 1,200 of Exxon trains at $77, and 1,500 of AT&T trading at $33.75. The MF has no liabilities outstanding and there are 15,000 shares outstanding. What is the funds NAV? = (4.000 $22)+(1.200*$77)+(1.500 33.75) / 15,000 $15.402 - If Sears increased to $26.50, Exxon to $78, and AT&T to $35, what is the new NAV? =Assignment Question #1 What are the fees in year 2 and the total investment value? ($9,996.36+(9,996.36*(1.05)/2) * .0085 = $87.093 Value = $9,996.36 *(1.05)-$87.093 $10,409.085 After 2 years, you've paid $400 if up front fees, and $170.733 in operating fees so $570.73, and you have made $409.085 on $10,000 The annual return is =? Assignment Question #3 11:20 11:24