Suppose you purchase 14,000 shares of a closed end mutual fund at its initial public offering; the offer price is $10 per share. The offering prospectus discloses that the fund promoter gets an 5 percent fee from the offering. If this fund sells at a 7 percent discount to NAV the day after the initial public offering, what is the value of your Investment? (Omit the "$" sign In your response.) Investment

Suppose you purchase 14,000 shares of a closed end mutual fund at its initial public offering; the offer price is $10 per share. The offering prospectus discloses that the fund promoter gets an 5 percent fee from the offering. If this fund sells at a 7 percent discount to NAV the day after the initial public offering, what is the value of your Investment? (Omit the "$" sign In your response.) Investment

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

Section: Chapter Questions

Problem 1PS

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1. A fund is set up to charge a load. Its net asset value is P16.50 and its offer price is P17.30. A. Assume the fund increased in value by .30 the first month after you purchased 100 shares. What is the total gain or loss? Compare the total current value with the total purchase amount. B. By what percentage would the net asset value of the shares have to increase for you to break even?
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) Mutual Fund Fidelity Growth Company Vanguard 500 Index PIMCO Total Return Vanguard Total Bond Market Index Rate of Return 14.83% 14.25% 3.77% 3.67% Stock fund Stock fund Type Bond fund Bond fund How much should you pay each month into a retirement account invested in the Vanguard bond fund if you wish to retire in 35 years with an investment valued at three million dollars? HINT [See Quick Example 2.] (Round your answer to the nearest cent.) $
Louis Hall read in the paper that Fidelity Growth Fund has an NAV of $13.94. He called Fidelity and asked how the NA Fidelity gave him the following information: Current market value of fund investment Current liabilities Number of shares outstanding Did Fidelity provide Louis with the correct information? O Yes O No $8,780,000 $ 975,000 560,000
You purchased 1,000 shares of a mutual fund at an offer price of $13.88 per share. Several months later you sold the shares for $14.42 per share. During the time you owned the shares, the fund paid a dividend of $0.65 per share. What was your return on investment? Round to the nearest tenth.
A year ago, an investor bought 100 shares of a mutual fund at $7.64 per share. This year, the fund has paid dividends of $0.71 per share and had a capital gains distribution of $0.52 per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.13. b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested in additional shares of the fund at an average price of $7.76 per share. a. Given that this no-load fund now has a net asset value of $8.13, the investor's holding period return is %. (Round to two decimal places.)
please answer within 30 minutes.
You have $7000 to invest. The mutual fund you are considering offers two classes of shares. Class A shares have no front-end load, an expense ratio of 3.6%, and an expected gross return of 8.4% per year. Class B shares have a front-end load of 7.1%, an expense ratio of 1.2%, and an expected gross return of 7.2% per year. How much more money will you make over 8 years if you invest in the Class B shares instead of the Class A shares? $231.67 O $575.23 $971.30 $179.15 $601.48
Explain well all point of question with proper answer.
Nn. 119.
The Emerging Growth and Equity Fund is a "low-load" fund. The current offer price quotation for this mutual fund is $21.72, and the front-end load is 1.95 percent. a. What is the NAV? (Round your answer to 2 decimal places.) Net asset value dived b. If there are 18.7 million shares outstanding, what is the current market value of assets owned by the fund? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Market value of assets
You invested $90,000 in a mutual fund at the beginning of the year when the NAV was $54.3. At the end of the year, the fund paid $.40 in short-term distributions and $.57 in long-term distributions. If the NAV of the fund at the end of the year was $63.94, what was your return for the year? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
What is Temporary financing?

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