Question
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.
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
Finance Accumulation And Monetary Power
Authors: Daniel Woodley
1st Edition
0367338556, 978-0367338558
