Solve problem Get Homework Help With Chege Accepl My courses > 3303 > Assignment 2: Chapters 4 and 5 Problem 4 Intro A mutual fund owns the following stocks: 17,000 shares of General Electric, 20,000 shares of IBM, and 72,000 shares of Exxon Mobile. The fund has to pay back-wages of $760,000, and has issued 1 million shares to mutual fund shareholders. The fund will receive a dividend of $10 per share from its holdings of General Electric stock in two weeks, which the fund manager will reinvest by buying more shares of GE. Ignore tax effects. The stock prices for GE, IBM, and Exxon are as follows, respectively: Time GE IBM Exxon 10am 673 111 224 End of the day 676 106 231 14 days later 682 104 222 Part 1 Attempt 1/5 for 10 pts. What is the value of the fund's holdings of Exxon at the end of the day? 16632000 Value of a stock position: VE PEQE = 231 72,000 = 16,632,000 Part 2 Attempt 2/5 for 9 pts. What is the total NAV (not per share) at the end of the day? 29484000 We need to calculate the value for GE and IBM, too: VGE-PGEGGE = 676 17,000 - 11,492,000 P 'Q=106.20,000 = 2,120,000 Total net asset value: NAV VE +VGE+VI - Liabilites - 16,632,000 + 11,492,000 + 2,120,000 -760,000 29,484,000 29,484,000 1,000,000 29.48 Part 4 Attempt 1/5 for 10 pts. If you place an order to buy 100 shares in the fund at 10am, how much will you have to pay in total? 2903 Shares in mutual funds are sold (and bought back) at the NAV at day's end (after the end of trading). You have to pay 100 - $29.48 = $2,948. Part 5 Attempt 5/5 for 6 pts. What's the return to an investor over the 14-day period if they submit a buy order at 10am (as in the previous question)? Back wages (an accrued liability to the fund) are now $608,000 after 2 weeks. Previous answers: 1+ decima -0.0146; -0.0148; 0.3246; -1.4586% Submit