Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On December 31 a mutual fund has the following assets and prices at 4:00 p.m. Stock Shares owned Price 1 1,000 $1.97 2 5,000 $48.26
-
On December 31 a mutual fund has the following assets and prices at 4:00 p.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 Calculate the net asset value (NAV) for the fund. Assume that 8,000 shares are outstanding for the fund.
-
On January 2 the prices at 4:00 p.m. are as follows:
Stock Shares owned Price 1 1,000 $2.03 2 5,000 $51.37 3 2,800 $29.08 4 10,000 $67.19 5 3,000 $4.42 Cash n.a. $2,408.00 Calculate the net asset value (NAV) for the fund.
-
Assume the new investor then sells the 420 shares. What is his profit? What is the annualized return? The fund sells 800 shares of stock 4 to raise the needed funds. Assume 250 trading days per year.
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