Suppose a mutual fund contains 2,000 shares of JP Morgan Chase, currently trading at $46.75, 1,000 shares of Walmart trading at $70.10, and 2,500 shares of Pfizer trading at $27.50. The mutual fund has no liabilities and 10,000 shares outstanding. held by investors.

a. What is the NAV of the fund?

b. Calculate the change in NAV of the fund if tomorrow JP Morgan Chase increses to $50, Walmart shares increase to $73, and Pfizer to $30.

c. Suppose today that 1,000 additional investors want to buy one share each of the mutual fund at the NAV of $23.235. This means that the fund manager has $23,235 in additional funds to invest. The fund manager decides to invest these additional funds to buy additional shares in JP Morgan Chase. Calculate tomorrows NAV given the same rise in shares values in B.