An open-end mutual fund has the following stocks: Stock Shares Stock Price A 6,000 89 B 33,000 22 C 5,200 91 D 73,500 13 If there are 50,000 shares of the mutual...

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An open-end mutual fund has the following stocks:
Stock Shares Stock Price
A 6,000 89
B 33,000 22
C 5,200 91
D 73,500 13
If there are 50,000 shares of themutual fund, what is the NAV?
Suppose the fund in the previous problem has liabilities of$110,000. What is the NAV of the fund now?
In the previous problem (#2), assume the fund is sold with a5.50 percent front-end load. What is the offering price of thefund?
A mutual fund sold $35 million of assets during the year andpurchased $29 million in assets. If the average daily assets of thefund were $103 million, what was the fund turnover?

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4.1 Ratings (542 Votes)

Stock	Shares	Stock Price	Value
A	6,000	89	534,000
B	33000	22	726,000
C	5,200	91	473,200
D	73,500	13	955,500
Total			2,688,700

(I) NAV = 2,688,700/ 50,000 = $54

(ii) NAV if the firm has liabilities = ( 2,688,700 - 110,000) / 50,000 = $52

(iii) Offer price with front load = $52 * ( 1+ 5.5%) = 54.41

(iv) Fund turnover % = Assets sold / Average daily assets = $35 / $103 = 33.98%

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An open-end mutual fund has the following stocks:StockSharesStock PriceA6,00089B33,00022C5,20091D73,50013If there are 50,000 shares of themutual fund, what is the NAV?Suppose the fund in the previous problem has liabilities of$110,000. What is the NAV of the fund now?In the previous problem (#2), assume the fund is sold with a5.50 percent front-end load. What is the offering price of thefund?A mutual fund sold $35 million of assets during the year andpurchased $29 million in assets. If the average daily assets of thefund were $103 million, what was the fund turnover?