QUESTION 1 The Fidelity Mutual Fund has liabilities of $7,000 and owns the following six stocks: COMPANY INDUSTRY China Angel Food Limited Consumer Staples Grand Banks Yachts Limited Consumer Discretionary KSH Holdings Limited Commercial Property Singapore Airlines Airlines Huan Hsin Holdings Limited Electronics United Overseas Bank Banking and Finance SHARES 1,000 1,100 2,500 600 1,400 700 PRICE ($) 12 15 7 18 22 16 The fund began by selling $90,000 of stock at $8 per share. REQUIRED: = (a) What is the fund's net asset value (NAV)? (b) In the current scenario of declining global market values, what should the portfolio manager do to rebalance the portfolio to moimise loss of capital? In your answer, consider only the six stocks listed above and advise on which industries should be invested in and which should be avoided. (c) An investment company is offering the following investment options: i. Diversified fund of 60% Equities, 40% Bonds ii. Global, large capitalisation equities fund iii. US Treasury Bond fund iv. Asian small capitalisation equities fund Describe your own risk profile. Which of these funds would you prefer to invest in and why