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 answer in dollars not in millions.) Portfolio value decreases to $ 402 X b-2. If a large investor redeems 2 million shares, what happens to shares outstanding? (Enter your answer in dollars not in millions.) Shares outstanding decreases ✓to $ 26 x

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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
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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