Open-end Fund A has 187 shares of ATT valued at $46 each and 41 shares of Toro valued at $86 each. Closed-end Fund B has 86 shares of ATT and 83 shares of Toro. Both funds have 1,000 shares outstanding.
a. What is the NAV of each fund using these prices? (Round your answers to 3 decimal places. (e.g., 32.161))
b. If the price of ATT stock increases to $47.25 and the price of Toro stock declines to $83.292, how does that impact the NAV of both funds? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
c. Assume that another 166 shares of ATT valued at $46 are added to Fund A. The funds needed to buy the new shares are obtained by selling 630 more shares in Fund A. What is the effect on Fund A’s NAV if the prices remain unchanged from the original prices?
Trending nowThis is a popular solution!
Step by stepSolved in 5 steps with 6 images
- An open-end fund has a net asset value of $16.70 per share. It is sold with a front-end load of 3%. Required: What is the offering price? Note: Round your answer to 2 decimal places.arrow_forwardA mutual fund has total assets of $39,333,444 and liabilities of $6,753,789. If there are 11,521,000 sharesoutstanding, what is the net asset value of the fund? $3.02 $3.85 $2.83 $2.16arrow_forwardThe Stone Harbor Fund is a closed-end investment company with a portfolio currently worth $450 million. It has liabilities of $4 million and 8 million shares outstanding. If the fund sells for $53 a share, what is its premium or discount as a percent of NAV? Multiple Choicearrow_forward
- An open-end mutual fund owns 1,000 shares of Dunkin Donut priced at $14.20/sh. The fund also owns 2,000 shares of Starbucks priced at $27.50/sh., and 5,000 shares of Gino’s Pizza priced at $12.00/sh. The fund itself has 4,000 of its own shares outstanding. What is the NAV of this mutual fund? A. $12.92 B. $35.80 C. $16.15 D. $17.90 E. $32.30arrow_forwardSuppose you own a mutual fund which has 13,000,000 shares outstanding. If its total assets are $36,000,0000 and its liabilities are $5,000,000, find the net asset value (in $) of the fund. Round to the nearest cent. 2$ Need Help? Read It Watch It Master Itarrow_forwardA year ago, an investor bought 600 shares of a mutual fund at $7.64 per share This year, the fund has paid dividends of $0.72 per share and had a capital gains distribution of $0.54 per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.23. b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $7.86 per share a. Given that this no-load fund now has a net asset value of $8.23, the investor's holding period return is% (Round to two decimal places)arrow_forward
- You own a mutual fund valued at $46 per share. It has a gross return of 8% and an expense ratio of 1.0%. Your share's real worth based upon the given information is . (round to the nearest cent){DO NOT INCLUDE COM Submitarrow_forwardThe following table presents information on four different open-end mutual funds. Use the information in the table to answer the questions that follow. FUND NAV NET CHG YTD % RET QtrF p 13.32 0.04 3.1 TmRE r 20.77 0.14 6.0 MRGG 29.81 0.28 8.5 MajTrk 44.21 0.37 9.6 The mutual fund charges a 12b-1 fee.arrow_forwardSuppose you own a mutual fund which has 11,000,000 shares outstanding. If its total assets are $44,000,000 and its liabilities are $7,000,000, find the net asset value (in $) of the fund. Round to the nearest cent. $arrow_forward
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education