Please Help!!! Problem 17-07
The Focus Fund is a mutual fund that holds long-term positions in a small number of nondividend-paying stocks. Its holdings at the end of two recent
years are as follows:
The Focus Fund is a mutual fund that holds long-term positions in a small number of nondividend-paying stocks. Its holdings at the end of two recent years are as follows: At the end of both years, Focus Fund had 5,440,000 shares outstanding. a. Calculate the net asset value for a share of the Focus Fund at the end of Year 1 , being sure to include the cash position in the net total portfolio value. Do not round intermediate calculations. Round your answer to the nearest cent. were done at Year 1 prices). Calculate the Year 2 NAV for Focus Fund, and compute the growth rate in the fund share value on a percentage basis. Do not round intermediate calculations. Round your answer for NAV to the nearest cent and for the growth rate to two decimal places. Year 2 NAV: $ Growth rate: c. At the end of Year 2, how many fund shares of the Focus Fund could the manager redeem without having to liquidate her stock positions (that is using only the cash account)? Do not round intermediate calculations. Round your answer to the nearest whole number. Use unrounded values from previous parts. shares d. If immediately after calculating the Year 2 NAV the manager received investor redemption requests for 510,000 shares, how many shares of each stock would she have to sell in order to maintain the same proportional ownership position in each stock? Assume that she liquidates the entire cash position before she sells any stock holdings. Do not round intermediate calculations. Round your answers to the nearest whole number. If your answer is zero, enter " 0, Use unrounded values from previous parts. Stock Number of Shares Sold ABCDEFGHIJKLM The Focus Fund is a mutual fund that holds long-term positions in a small number of nondividend-paying stocks. Its holdings at the end of two recent years are as follows: At the end of both years, Focus Fund had 5,440,000 shares outstanding. a. Calculate the net asset value for a share of the Focus Fund at the end of Year 1 , being sure to include the cash position in the net total portfolio value. Do not round intermediate calculations. Round your answer to the nearest cent. were done at Year 1 prices). Calculate the Year 2 NAV for Focus Fund, and compute the growth rate in the fund share value on a percentage basis. Do not round intermediate calculations. Round your answer for NAV to the nearest cent and for the growth rate to two decimal places. Year 2 NAV: $ Growth rate: c. At the end of Year 2, how many fund shares of the Focus Fund could the manager redeem without having to liquidate her stock positions (that is using only the cash account)? Do not round intermediate calculations. Round your answer to the nearest whole number. Use unrounded values from previous parts. shares d. If immediately after calculating the Year 2 NAV the manager received investor redemption requests for 510,000 shares, how many shares of each stock would she have to sell in order to maintain the same proportional ownership position in each stock? Assume that she liquidates the entire cash position before she sells any stock holdings. Do not round intermediate calculations. Round your answers to the nearest whole number. If your answer is zero, enter " 0, Use unrounded values from previous parts. Stock Number of Shares Sold ABCDEFGHIJKLM
