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There are 25 million shares of the mutual fund outstanding. Consider an index fund that contains the following four stocks: Ford Motor Company (F), Global
There are 25 million shares of the mutual fund outstanding.
Consider an index fund that contains the following four stocks: Ford Motor Company (F), Global Net Lease, Inc. (GNL), Jones Lang LaSalle Incorporated (JLL), and Merck \& Co., Inc. (MRK). On April 5, 2023, the stock prices at close were: The mutual fund held the following numbers of shares in these companies: During the day on April 5 , investors purchased 3.75 million additional mutual fund shares. Use the end-of-trading-day share prices to calculate the net cash inflow into the mutual fund. How many shares of MRK did the index fund manager have to purchase in order to maintain a portfolio with the same portfolio weights as at the start of the day? You should assume that the fund manager invests all net inflows in securities at market close prices on April 5 . She holds no cash balance. (Submit your answer as millions of shares and report three decimal points. For instance, if the fund manager purchased 1,342,745.7 shares, enter 1.343.) Consider an index fund that contains the following four stocks: Ford Motor Company (F), Global Net Lease, Inc. (GNL), Jones Lang LaSalle Incorporated (JLL), and Merck \& Co., Inc. (MRK). On April 5, 2023, the stock prices at close were: The mutual fund held the following numbers of shares in these companies: During the day on April 5 , investors purchased 3.75 million additional mutual fund shares. Use the end-of-trading-day share prices to calculate the net cash inflow into the mutual fund. How many shares of MRK did the index fund manager have to purchase in order to maintain a portfolio with the same portfolio weights as at the start of the day? You should assume that the fund manager invests all net inflows in securities at market close prices on April 5 . She holds no cash balance. (Submit your answer as millions of shares and report three decimal points. For instance, if the fund manager purchased 1,342,745.7 shares, enter 1.343.)Step by Step Solution
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