The Mutual Fund

ask 1. The Mutual Fund One of the hottest investments on Wall Street today is the Share-All Mutual Fund. The Share-All Fund has issued 500 thousand shares for investors to buy. Each share represents one five hundred thousandth of the fund's total net asset value. The fund owns 100 thousand shares of stock in four companies. On one particular day the price per share of each of the four companies is described below Company Name Allied Oil Beck Keyboard Manufacturing Jasmine Tea Lapland Importing-Exporting Total Asset Value Current price (S/share) Number of Shares (1000) Total Value ($1000) 30 15 23 30 20 28 900 300 644 484 2,328 So on this particular day, the total asset value is $2,328 thousand, and each share of Share-All is worth 2328/500= $4.656. The price per share of each of the four companies varies and so the price of a share of fund is also variable. Let s be the price of a share of Share-All Fund and let A, B, J and L be the current price of Allied, Beck, Jasmine and Lapland respectively. Write S as a function of A, B, J and L. 1. Many factors affect the price of a stock such as the worldwide exchange rate w and the US prime lending rate p. We have developed the models below Caateandsing the chain rule. And state what each of these derivatives means 2. A(w.p) 0.1w2-2p+30.05 B(w.p) 0.01w-p+ 15.05 J(w.p) 2w +21.30 L(w.p)p+22.06