Question
Calculate the NAV of the following fund, assuming 35,000 shares are outstanding. Calculate the percentage change in the NAV of the fund on April 29th
Calculate the NAV of the following fund, assuming 35,000 shares are outstanding. Calculate the percentage change in the NAV of the fund on April 29th 2022.
| Stock | Shares owned | Price |
| PYPL | 3.000 | $ 117.65 |
| TWTR | 5.000 | $ 50.98 |
| PG | 9.000 | $ 154.62 |
| NVDA | 6.000 | $ 259.31 |
| RTX | 2.000 | $ 98.81 |
Besides the underlying securities listed above, the fund shown on the Balance Sheet
Cash ______________________________________________ $ 155,000.-
Liabilities ___________________________________________ $ 18,500.-
An investor comes the day after computing the above NAV and invests quarter million USD in the fund. Assume no fees or expenses. The money managerbuys 2,000 shares of PayPal and 1,500 of Twitter.
a) Will the NAV increase or decrease? Why?
b) Calculate the return on the investor’s shares. How many did he buy with 250k$?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Computation of NAV of the fund Particulars Market Value of Shares owned by fund PAYP...
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
14th edition
978-1259284861, 1259284867, 77862392, 978-0077862398
