16. You have been recently hired by an investment firm that manages several mutual funds....
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16. You have been recently hired by an investment firm that manages several mutual funds. You were assigned to calculate the fund's net asset value per share for an open-end mutual fund that your firm controls. Yesterday. the fund had 500 mutual fund shares outstanding, held $600,00 cash, had accrued a management fee of $1,000, and held the following four stocks Value (5) Securities Stock A Stock B Stock C Stock D Number of Shares 250 700 300 100 Price per Share (5) 10,00 8,00 7,50 2,00 a) What's the fund's NAV per share? (3 points) b) An investor redeem 50 shares. Assuming that the fund is an open-end mutual fund, what is the value in dollar the investor will receive after his/her shares liquidation? (3 points) c) Suppose that the fund is a close-end fund and investor can only liquidate his/her position now at 95% of the NAV face value. What's the value in dollar she/he will receive after the liquidation? 3 points)
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