Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 4, Problem 19PS
City Street Fund has a portfolio of $450 million and liabilities of $10 million. (LO 4.3)
a. If there are 44 million shares outstanding, what is the net asset value?
b. If a large investor redeems 1 million shares, what happens lo the portfolio value, to shares outstanding, and to NAV?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
City Street Fund has a portfolio of $420 million and liabilities of $30 million.
Required:a. If there are 30 million shares outstanding, what is the net asset value?
b-1. If a large investor redeems 3 million shares, what happens to the portfolio value? (Enter your answer in dollars not in millions.)
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?
Suppose you own a mutual fund which has 19,000,000 shares outstanding. If its total assets are $42,000,000 and its liabilities are $5,000,000, find the net asset value (in $) of the fund. Round to the nearest cent.
$ _______
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Problem #2. Calculate the total cost, proceeds, total gain (or loss), and return on investment for the given mutual fund. The offer price is the purchase price of the shares, and the net asset value is the price at which the shares were later sold. Show your work. Shares Offer Totall Price Cost 300 $10.35| ? Total Per Share Gain Dividends (or Loss) ? Net Asset Proceeds!. Value $12.95 ? .76 Returr Investn %arrow_forwardded 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 Xarrow_forward10. A mutual fund has total assets of P680M and total liabilities of P38M. If the company has 545,000 outstanding shares and you plan to invest money worth P1.5M, how many shares .8 should you receive?ulev sosts diiw llid yauaROTTIysb-00thlyarrow_forward
- Calculate the total cost in dollar proceeds and dollars total gain or loss in dollars and return on investment for the mutual fund investment. The offer price is the purchase price of the shares and the net asset value is the price at which the shares were later sold. Round your return on investment to one decimal place.?arrow_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_forwardNow imagine that you bought a mutual fund that had a beginning NAV of $10 per share. It paid dividends of $0.50 and distributed capital gains of $0.75. After one year, the ending NAV is $9.50.What is your total return?arrow_forward
- 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_forwardAn Investment fund has $2 million in cash and $8 million Invested in securities. It currently has 2 million shares outstanding. a. What is the NAV of this fund? (Round your answer to 2 decimal places. (e.g., 32.16)) b. Assume that some of the shareholders decide to cash in their shares of the fund. How many shares, at its current NAV, can the fund take back without resorting to a sale of assets? c-1. As a result of anticipated heavy withdrawals, it sells 24,000 shares of IBM stock currently valued at $35. Unfortunately, It receives only $32 per share. What is the net asset value after the sale? (Round your answer to 2 decimal places. (e.g., 32.16) c-2. What are the fund's cash assets after the sale? (Enter your answers in millions rounded to 2 decimal places. (e.g., 32.16)) d-1. Assume after the sale of IBM shares, 200,000 shares are sold back to the fund. What is the current NAV? (Do not round Intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) d-2. Is…arrow_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_forward
- Compared to mutual funds, hedge funds are usually subject to [MORE/LESS?] regulation. Suppose that Thompson Hedge Fund obtains and invests $3 of borrowed funds for every $1 of equity invested. In other words, it can invest $4 of assets for each $1 of equity. Also suppose that Thompson can achieve a 10% return on assets (ROA). Given this ROA, the return on Thompson’s equity investment is [?]%. Suppose that Thompson Hedge Fund obtains and invests $3 of borrowed funds for every $1 of equity invested. In other words, it can invest $4 of assets for each $1 of equity. However, suppose that Thompson suffers a 10% loss, or a -10% return on assets (ROA). Given this ROA, the return on Thompson’s equity investment is [?]%.arrow_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_forward1. The percentage measure of how well an investment is doing and is often used as the basis for comparison with other investments is the _____. A. dividend yield B. price-earning ratio C. return on equity D. return on investment 2. Ricardo invested a lump sum of $11,500 in a mutual fund with an offer price of $12.33. How many shares did he purchase? (Round to the nearest thousandth.) A. 839.206 B. 932.685 C. 1,073.401 D. 1,352.035arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Investing For Beginners (Stock Market); Author: Daniel Pronk;https://www.youtube.com/watch?v=6Jkdpgc407M;License: Standard Youtube License