Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part C is incorrect, please help! What's listed is the instructions that were give. Open-end Fund A has 173 shares of ATT valued at $39

image text in transcribedPart C is incorrect, please help! What's listed is the instructions that were give.

Open-end Fund A has 173 shares of ATT valued at $39 each and 34 shares of Toro valued at $79 each. Closed-end Fund B has 79 shares of ATT and 76 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 $40.25 and the price of Toro stock declines to $76.292, 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 159 shares of ATT valued at $39 are added to Fund A. The funds needed to buy the new shares are obtained by selling 657 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 $ 9.433 $ 9.085 NAV of Fund B b. Percentage change in NAV Fund A Percentage change in NAV Fund B c. Percentage change in NAV Fund A 1.32% (1.18)% 0.02% Open-end Fund A has 173 shares of ATT valued at $39 each and 34 shares of Toro valued at $79 each. Closed-end Fund B has 79 shares of ATT and 76 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 $40.25 and the price of Toro stock declines to $76.292, 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 159 shares of ATT valued at $39 are added to Fund A. The funds needed to buy the new shares are obtained by selling 657 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 $ 9.433 $ 9.085 NAV of Fund B b. Percentage change in NAV Fund A Percentage change in NAV Fund B c. Percentage change in NAV Fund A 1.32% (1.18)% 0.02%

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

International Finance

Authors: Maurice D. Levi

4th Edition

More Books

Students also viewed these Finance questions

Question

3. 6.4c What is a balloon payment? How do you determine its value?

Answered: 1 week ago