Problem $5$

Innovate Wealth Mutual Fund is a leading investment option in Bangladesh, focusing on innovative and sustainable projects. As an investor, you invested in this fund at the beginning of $2020.$ At the start of $2020,$ Innovate Wealth Mutual Fund had a total of $55,000$ shares in the market.

The investment portfolio composition during the time of investment:

$500$ shares of SolarEco Ltd$.$ at BDT $80$ per share.

$1,000$ shares of BioTech Solutions at BDT $50$ per share.

$800$ shares of GreenBuild Corp. at BDT $120$ per share.

$1,200$ bonds of EcoBonds at BDT $1,000$ each.

BDT $80,000$ in cash.

Liabilities totaling BDT $350,000.$

After analyzing the fund's performance over a three$-$year investment horizon, you find the following changes:

End of Year $1$:

SolarEco Ltd$.$ shares appreciated by $12\%.$

BioTech Solutions shares appreciated by $6\%.$ GreenBuild Corp. shares depreciated by $8\%.$

EcoBonds paid an annual interest of BDT $100$ per bond.

Innovate Wealth Mutual Fund paid an annual dividend of BDT $10$ at the end of year $1$ to its shareholders. No changes occurred in the cash and liabilities.

End of Year $2$:

SolarEco Ltd$.$ shares depreciated by $5\%.$

BioTech Solutions shares appreciated by $10\%.$

GreenBuild Corp. shares depreciated by $7\%.$

EcoBonds paid an annual interest of BDT $100$ per bond.

The fund repaid its entire liabilities and held an additional cash of BDT $60,000.$

Innovate Wealth Mutual Fund paid an annual dividend of BDT $8.$

End of Year $3$:

Stock values remained the same.

EcoBonds paid an annual interest of BDT $100$ per bond.

Held an additional cash of BDT $70,000$ and incurred an additional liability of BDT $250,000.$ Innovate Wealth Mutual Fund paid an annual dividend of BDT $6.$

If the total number of shares of the mutual fund remain unchanged during the period, calculate:

a$.$ The initial NAV and the NAVS at the end of each year of the Innovate Wealth Mutual Fund.

b$.$ Your holding period yield for the investment in Innovate Wealth Mutual Fund.

C$.$

Your annualized yield from the investment.