QUESTION: A mutual fund has 500 million-peso worth of stock, 50 million pesos worth of bonds, and 10 million pesos in cash. The fund's total liabilities amount to 10 million pesos. There are 50 million shares outstanding. You invest 150,000 pesos in this fund. (a) Calculate the NAV. (b) How many shares will you purchase?

***Note: When solving the question, please be guided by the sample problem attached.

Example: A mutual fund has 600 millionpeso worth of stock, 5 million pesos worth of bonds, and 1 million pesos in cash. The fund's total liabilities amount to 2 million pesos. There are 25 million shares outstanding. You invest 15,000 pesos in this fund. (a) Calculate the NAV. (b) How many shares will you purchase? AL 606,000,0002,000,000 Solution: (a) NAV = = = 24.16 pesos. Hence, the NAV of the N 25,000,000 fund is 24.16 pesos. (b) To nd how many shares you will purchase, you must divide the amount invested by the cost per share of the fund and then round down to the 12:010.: = 620- Hence; you must purchase 620 nearest whole number. So, we have shares of the mutual fund