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  3. an investment company has $5.0 million in assets,

An investment company has $5.0 million in assets, $250,000 in liabilities and 150,000 shares outstanding....

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Finance

  1. An investment company has $5.0 million in assets, $250,000 in liabilities and 150,000 shares outstanding.

  1. What is its NAV?

  1. Suppose the value of the funds assets doubles then the fund pays off its liabilities. Assume it is an open end fund. How many shares will an investor who invests $10,000 receive? Fractional shares are allowed.

  1. Calculate the Coefficient of Variation for the following companies. Determine which is the riskiest and explain why.

Standard Deviation

Average Return

Coefficient of Variation

Skynet, Inc.

18.20%

10.35%

Corleone Importers

8.50%

6.45%

Aldo's Hairpieces

6.25%

3.50%

  1. Calculate the annual return for the following:

  1. You invest $125,000 and one year later this investment is worth $145,000. What is the annual rate of return?

  1. You invest $75,000 and seven years later it is worth $150,000. What is the annual rate of return

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