Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:ded
City Street Fund has a portfolio of $432 million and liabilities of $12 million.
Required:
a. If there are 28 million shares outstanding, what is the net asset value?
Net asset
value
$ 15 Per share
b-1. If a large investor redeems 2 million shares, what happens to the portfolio value? (Enter your ansv er in
dollars not in millions.)
Portfolio value
decreases
to
Shares outstanding decreases
b-2. If a large investor redeems 2 million shares, what happens to shares outstanding? (Enter your answer in
dollars not in millions.)
402 X
to $
26 X
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