Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 16. you have been recently hired by an investment

16. You have been recently hired by an investment firm that manages several mutual funds....

60.1K

Verified Solution

Question

Finance

image
16. You have been recently hired by an investment firm that manages several mutual funds. You were assigned to calculate the fund's net asset value per share for an open-end mutual fund that your firm controls. Yesterday. the fund had 500 mutual fund shares outstanding, held $600,00 cash, had accrued a management fee of $1,000, and held the following four stocks Value (5) Securities Stock A Stock B Stock C Stock D Number of Shares 250 700 300 100 Price per Share (5) 10,00 8,00 7,50 2,00 a) What's the fund's NAV per share? (3 points) b) An investor redeem 50 shares. Assuming that the fund is an open-end mutual fund, what is the value in dollar the investor will receive after his/her shares liquidation? (3 points) c) Suppose that the fund is a close-end fund and investor can only liquidate his/her position now at 95% of the NAV face value. What's the value in dollar she/he will receive after the liquidation? 3 points)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A block of mass m1 = 1.60 kg initially moving to the right with a speed...

Physics
Q

Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at...

Accounting
Q

A dipole having dipole moment p is placed in front of a solid uncharged conducting...

Physics
Q

Very Short Answer VSA 1 MARK Each 1 Under which condition laws of Boyle Charles...

Physics
Q

10 pts We are told that 67 of the Missoula population has been skiing We...

Statistics
Q

The Little Theatre is a nonprofit organization devoted to staging plays for children. The theatre...

Accounting
Q

Simulation 2 Financial information is presented here for two companies: ...

Accounting
Q

1. The Practice of Management written by A. O Peter F Drucker B. O Terry...

Accounting
Q

Every year, Veras chain of candy stores pays one of their Swiss chocolate suppliers USD...

Finance
Q

46. The business risk of a firm refers to the a. b. c. d. results...

Finance
Q

1 question On November 7 . Mura Company borrows $240,000...

Accounting
Q

You plan to buy a car in 5 years for $26000. Assume the interest rate...

Finance