Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Open-end Fund A has 201 shares of ATT valued at $53 each and 48 shares of Toro valued at $93 each. Closed-end Fund B has

image text in transcribed

Open-end Fund A has 201 shares of ATT valued at $53 each and 48 shares of Toro valued at $93 each. Closed-end Fund B has 93 shares of ATT and 90 shares of Toro. Both funds have 1,000 shares outstanding. a. What is the NAV of each fund using these prices? (Round your answers to 3 decimal places. (e.g., 32.161)) b. If the price of ATT stock increases to $54.25 and the price of Toro stock declines to $90.292, how does that impact the NAV of both funds? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) c. Assume that another 173 shares of ATT valued at $53 are added to Fund A. The funds needed to buy the new shares are obtained by selling 607 more shares in Fund A. What is the effect on Fund A's NAV if the prices remain unchanged from the original prices? a. NAV of Fund A NAV of Fund B b. Percentage change in NAV Fund A Percentage change in NAV Fund B c. Percentage change in NAV Fund A % % %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Commodity Trade And Finance

Authors: Michael Tamvakis

2nd Edition

041573245X, 978-0415732451

More Books

Students also viewed these Finance questions

Question

Explain the forces that influence how people handle conflict

Answered: 1 week ago