1. Wangari mobilizes money from Ivorian students in Ghana and invests the moneys in commercial papers of Ivorian companies, certificate of deposit of Ivorian banks, and treasury bills of the Republic of Ivory Coast. The fund started the year 2010 with a portfolio of assets valued at CFA 4,500,000 and 10 million shares outstanding. Over the year, the fund invested in a portfolio of commercial papers, certificate of deposits, and Federal treasury bills which raked in total investment income of CFA 900,000 , and the value of the assets increased by 2%. The fund managers charge management fee at 2.5% of the value of assets invested.

Required:

1. How would you classify the fund based on investment policy?
2. Compute the NAV at the beginning of the year and at the end of the year.
3. What is the rate of return for investors in the fund?