Question
Open-end Fund A has 195 shares of Verizon valued at $50 each and 45 shares of Telsa valued at $90 each. Closed-end Fund B has
Open-end Fund A has 195 shares of Verizon valued at $50 each and 45 shares of Telsa valued at $90 each. Closed-end Fund B has 90 shares of Verizon and 87 shares of Telsa. Both funds have 1,000 shares outstanding. Assume that another 170 shares of Verizon valued at $50 are added to Fund A. The funds needed to buy the new shares are obtained by selling 616 more shares in Fund A. What is the effect on Fund As NAV (e.g. how much will Fund A's NAV change in dollars) if the prices remain unchanged from the original prices?
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
Fanatical Prospecting The Ultimate Guide To Opening Sales Conversations And Filling The Pipeline By Leveraging Social Selling Telephone Email Text And Cold Calling
Authors: Jeb Blount, Mike Weinberg
1st Edition
1119144752, 978-1119144755
