QUESTION 22

B2

On a scrap paper, make the calculations necessary to answer the questions below. Then use your draft to fill the following multiple blanks. The scrap paper will not be uploaded but needs to be kept for future reference.

On 4^th October 2020, an open-ended managed fund had 8,420 units on issue, and held the portfolio described in the table below. The amount of deposits held in the fund amounted to $3,000. The price for each share is the market price that day at 4:00pm.

Share	Shares owned (quantity)	Price
1	1,000	$ 2.03
2	5,000	$51.37
3	2,800	$29.08
4	10,000	$67.19

590 units are ordered by new investors on 4th October at 2pm;

25 units are ordered by new investors on 4th October at 6pm;

10 units are subject to a redemption order by leaving investors on 4th October at 10am;

50 units are subject to a redemption order by leaving investors on the 5th October 2020 at 11am.

Calculate the managed funds portfolio value at 4pm on the 4th October 2020. Round up to three decimal places. Do not type the $ sign.

Define the number of units that needs to be included for the calculation of the price at 4pm on the 4th October 2020. Only type a number.

Calculate the unit price that new investors will pay or leaving investors will receive if they placed an order on 4th October 2020 before 4pm. Round up your result to three decimal places. Do not type the $ sign.

Assume the units ownership is transferred the day after the price was calculated for the order.

Investors whose order could legally be processed on the 4th October 2020 paid or received payment for their units on the 5th October 2020. Assume their payment or the fund payment was received at once by the managed fund but was not invested in shares yet.

Due to the announcement of company 4s bad performance, the value of share 4 dropped to $50 by the end of the 5^th October 2020. The prices of shares 1, 2 and 3 remained unchanged during that day.

Calculate the managed funds portfolio value at 4pm on the 5th October 2020. Round up to three decimal places. Do not type the $ sign.

Define the number of units that needs to be included for the calculation of the price at 4pm on the 5th October 2020. Only type a number.

Calculate the unit price at 4pm on the 5th October 2020. Round up your result to three decimal places. Do not type the $ sign.

How many units will be bought or redeemed at this price? Only type a number.

Which day do the buyers of the 25 units ordered on 4th October 2020 at 6pm become official owners of the units? Type 3 if this is on the 3rd October. Type 4 if this is on the 4th October; type 5 if this is on the 5th October; type 6 if this is on the 6th October; type 7 of this is on the 7th October.

Which day are the 25 units ordered on 4th October 2020 at 6pm included in the calculation of the unit price for the first time ? Type 3 if this is on the 3rd October. Type 4 if this is on the 4th October; type 5 if this is on the 5th October; type 6 if this is on the 6th October; type 7 of this is on the 7th October.