Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. questions a-g trace a sequence of transactions inv

Questions A-G trace a sequence of transactions involving a single mutual fund. A) On January...

50.1K

Verified Solution

Question

Finance

image

Questions A-G trace a sequence of transactions involving a single mutual fund. A) On January 1 a mutual fund has the following assets and prices at 4:00p.m. Stock Shares owned Price 1,000 $1.97 $48.26 1,000 $26.44 10,000 $67.49 3,000 $2.59 1 2 5,000 3 4 5 Calculate the net asset value (NAV) for the fund. Assume that 8,000 shares are outstanding for the fund. B) An investor sends the fund a check for $50,000. If there is no front-end load, calculate the new number of shares and price per share. Assume the manager purchases 1,800 shares of stock 3, and the rest is held as cash C) On January 2 the prices at 4:00 p.m. are as follows: Stock Shares owned 1 1,000 2 5.000 3 2.800 10,000 5 3,000 Cash na. Price $2.03 $51.37 $29.08 $67.19 84.42 $2.408.00 Calculate the net asset value (NAV) for the fund. D) Assume the new investor then sells the 420 shares. What is his profit? What is the annualized return? Assume 250 trading days per year. E) Assume that the fund was charging a 2% upfront load. What would have been the return? F) Assume that the fund was charging a 2% back-end load. What would have been the return

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students