Question
QUESTION FOUR A. Discuss two advantages and two drawbacks of mutual funds in Ghana 7 marks B. The WIUC closed-end fund has GHS350 million in
QUESTION FOUR A. Discuss two advantages and two drawbacks of mutual funds in Ghana 7 marks B. The WIUC closed-end fund has GHS350 million in securities, GHS80 million in liabilities and 20 million in shares outstanding. It trades at a 10% discount from net asset value (NAV) Required: i. Calculate the net asset value of the fund 1 mark ii. Calculate the current price of the fund 1 mark C. Assume you purchased a low load fund at GHS10.30 with a net asset value of GHS10.00, Required: i. Calculate the percentage load of the fund 2 marks ii. Calculate the new NAV if the funds net asset value went up 33.72%. 2 marks iii. Calculate the cedi profit or loss per share based on your purchase price 2 marks Total 15 marks
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