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  3. an open-end mutual fund has the following stocks:

An open-end mutual fund has the following stocks: Stock Shares Stock Price A 6,000 89 B 33,000 22 C 5,200 91 D 73,500 13 If there are 50,000 shares of the mutual...

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Finance

  1. An open-end mutual fund has the following stocks:

StockSharesStock Price
A6,00089
B33,00022
C5,20091
D73,50013

If there are 50,000 shares of themutual fund, what is the NAV?

Suppose the fund in the previous problem has liabilities of$110,000. What is the NAV of the fund now?

In the previous problem (#2), assume the fund is sold with a5.50 percent front-end load. What is the offering price of thefund?

A mutual fund sold $35 million of assets during the year andpurchased $29 million in assets. If the average daily assets of thefund were $103 million, what was the fund turnover?

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4.1 Ratings (542 Votes)

Stock Shares Stock Price Value
A                        6,000 89                       534,000
B 33000 22                       726,000
C                        5,200 91                       473,200
D                     73,500 13                       955,500
Total                    2,688,700

(I) NAV = 2,688,700/ 50,000 = $54

(ii) NAV if the firm has liabilities = ( 2,688,700 - 110,000) / 50,000 = $52

(iii) Offer price with front load = $52 * ( 1+ 5.5%) = 54.41

(iv) Fund turnover % = Assets sold / Average daily assets = $35 / $103 = 33.98%
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Transcribed Image Text

An open-end mutual fund has the following stocks:StockSharesStock PriceA6,00089B33,00022C5,20091D73,50013If there are 50,000 shares of themutual fund, what is the NAV?Suppose the fund in the previous problem has liabilities of$110,000. What is the NAV of the fund now?In the previous problem (#2), assume the fund is sold with a5.50 percent front-end load. What is the offering price of thefund?A mutual fund sold $35 million of assets during the year andpurchased $29 million in assets. If the average daily assets of thefund were $103 million, what was the fund turnover?

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