Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Chapter 4, Problem 13PS
The composition of the Fingroup Fund portfolio is as follows:
Stock Shares Price A 200.000 $35 B 300,000 40 C 400,000 20 D 600,000 25
The fund has not borrowed any funds, but its accrued management ice with the
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The composition of the Fingroup Fund portfolio is as follows:
Stock
B
Shares
200,000
300,000
400,000
600,000
Price
$35
40
20
25
The fund has not borrowed any funds, but its accrued management fee with the portfolio
manager currently totals $30,000. There are 4 million shares outstanding. What is the
net asset value of the fund? (LO 4-3)
The composition of the Fingroup Fund portfolio is as follows:
Price
$ 35
34
26
25
Stock
A
B
C
D
Shares
200,000
288,000
406,000
660,000
The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $46,000. There are
5.2 million shares outstanding.
What is the net asset value of the fund? (Round your answer to 2 decimal places.)
Net asset value
Consider an open-end mutual fund with 2 million shares outstanding, liabilities of $5 million,
and the following portfolio of assets:
Asset
Shares Held Share Price
PFE
200,000
300,000
400,000
35
BCS
10
АМС
8
What is the net asset value of the fund? Would your answer have been different
if this were a closed-end fund instead?
Chapter 4 Solutions
Essentials Of Investments
Ch. 4 - Prob. 1PSCh. 4 - Prob. 2PSCh. 4 - Prob. 3PSCh. 4 - Prob. 4PSCh. 4 - Prob. 5PSCh. 4 - Prob. 6PSCh. 4 - Prob. 7PSCh. 4 - Prob. 8PSCh. 4 - Prob. 9PSCh. 4 - Prob. 10PS
Ch. 4 - An open-end fund has a net asset value of $10.70...Ch. 4 - Prob. 12PSCh. 4 - The composition of the Fingroup Fund portfolio is...Ch. 4 - Reconsider the Fingroup Fund in the previous...Ch. 4 - Prob. 15PSCh. 4 - Prob. 16PSCh. 4 - Prob. 17PSCh. 4 - Loaded-Up Fund charges a 12b-1 fee of 1% and...Ch. 4 - City Street Fund has a portfolio of $450 million...Ch. 4 - Prob. 20PSCh. 4 - Prob. 21PSCh. 4 - Prob. 22PSCh. 4 - Prob. 23PSCh. 4 - Prob. 24PSCh. 4 - Prob. 25PSCh. 4 - Prob. 26PSCh. 4 - Prob. 27PSCh. 4 - You expect a tax-free municipal bond portfolio to...Ch. 4 - Prob. 29PSCh. 4 - Prob. 30CCh. 4 - Prob. 1WMCh. 4 - Prob. 2WMCh. 4 - Prob. 3WM
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- 3. The composition of a "BestFund" is as follows: Shares Share price 200,000 300,000 400,000 600,000 Stock A B C D 35 40 20 25 a. The fund's accrued management fee with the portfolio manager currently totals $30,000. There are 4 million shares outstanding. What is the net asset value of the fund? b. If during the year the portfolio manager sells all of the holdings of stock D and replaces it with 200,000 shares of stock E at $50 per share and 200,000 shares of stock F at $25 per share, what is the portfolio turnover rate?arrow_forwardThe composition of the Fingroup Fund portfolio is as follows: Stocks Shares Price 200,000 Php 35 B 300,000 40 C 400,000 20 D 600,000 25 The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals Php30,000. There are 4 million shares outstanding. What is the net asset value of the fund?arrow_forwardSuppose you are the money manager of a $4.82 millioninvestment fund. The fund consists of four stocks with the following investments and betas:Stock Investment BetaA $ 460,000 1.50B 500,000 (0.50)C 1,260,000 1.25D 2,600,000 0.75 If the market’s required rate of return is 8% and the risk-free rate is 4%, what is the fund’srequired rate of return?8-8 BETA COEFFICIENT Given tarrow_forward
- Suppose today a mutual fund contains 2,000 shares of JPMorgan Chase, currently trading at $67.75, 1,000 shares of Walmart, currently trading at $66.10, and 2,500 shares of Pfizer, currently trading at $34.50. The mutual fund has no liabilities and 10,000 shares outstanding held by investors. a. What is the NAV of the fund? b. Calculate the change in the NAV of the fund if tomorrow JPMorgan's shares increase to $69, Walmart's shares increase to $71, and Pfizer's shares decrease to $33. c. Suppose that today 1,000 additional investors buy one share each of the mutual fund at the NAV of $28.785. This means that the fund manager has $28,785 in additional funds to invest. The fund manager decides to use these additional funds to buy additional shares in JPMorgan Chase. Calculate tomorrow's NAV given the same rise/fall in share values as assumed in part (b). (For all requirements, do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161)) a. NAV of the…arrow_forwardThe composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 200000 $35 B 300000 40 C 400000 20 D 600000 25 The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $30,000. There are 4 million shares outstanding. What is the net asset value of the fund?arrow_forwardSuppose you are the money manager of a $4.82 millioninvestment fund. The fund consists of four stocks with the following investments and betas:Stock Investment BetaA $ 460,000 1.50B 500,000 (0.50)C 1,260,000 1.25D 2,600,000 0.75If the market’s required rate of return is 8% and the risk-free rate is 4%, what is the fund’s required rate of return?arrow_forward
- 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?arrow_forwardSuppose you are the money manager of a $5.08 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta $ 440,000 A B C D 0.75 If the market's required rate of return is 10% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. 500,000 1,140,000 3,000,000 1.50 (0.50 ) 1.25arrow_forwardThe Closed Fund is a closed-end investment company with a portfolio currently worth $200 million. It has liabilities of $3 million and 5 million shares outstanding.a. What is the NAV of the fund?b. If the fund sells for $36 per share, what is its premium or discount as a percent of net asset value?arrow_forward
- Suppose you are the money manager of a $4.88 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment A $ 260,000 B 640,000 с 1,180,000 D 2,800,000 0.75 If the market's required rate of return is 10% and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % Beta 1.50 (0.50) 1.25arrow_forwardNet asset value (NAV) of an investment fund is calculated as total portfolio value divided by number of fund shares. Accordingly, if the total portfolio value is 100.000 $ and the number of shares is 55.000, then the NAV would be 100.000 $/55.000 = 1,818 S. Now, suppose that you are a portfolio manager of a bond fund that has 20.000 fund shares outstanding. You consider 3 investments for your portfolio: (a) A T-bill that has a 194 day maturity with a face value of 10.000 $. (b) A zero-coupon bond that has a 10 year maturity with a face value of 100.000 $. (c) A bond that pays quarterly coupon payments with an annual coupon rate of 12%, a face value of 50.000 $ and a maturity of 5 years. You know that the annual market yields are 10%. If you invest them all right now, what would be the NAV of your fund at the time of investment? (1 year = 360 days)arrow_forwardActivity 1 The composition of the Fingroup Fund portfolio is as follows: Stocks Shares Price 200,000 Php 35 B 300,000 40 C 400,000 20 D. 600,000 25 The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals Php30,000. There are 4 million shares outstanding. What is the net asset value of the fund?arrow_forward
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Investing For Beginners (Stock Market); Author: Daniel Pronk;https://www.youtube.com/watch?v=6Jkdpgc407M;License: Standard Youtube License