INVESTMENTS(LL)W/CONNECT
11th Edition
ISBN: 9781260433920
Author: Bodie
Publisher: McGraw-Hill Publishing Co.
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Question
Chapter 4, Problem 20PS
Summary Introduction
(A)
Adequate information:
Portfolio value- $ 450 million
Liabilities value- $ 10 million
Number of shares outstanding- 44 million shares
To compute:
Net asset value of the fund
Introduction:
Net asset value of the fund is the value of the portfolio owned by the fund on a particular date netted off all the liabilities to the outsiders.
Summary Introduction
(B)
Adequate information:
NAV- $ 10 per share
Number of shares outstanding- 44 million shares
Number of units sold by investor- 1 million
To compute:
Revised Net asset value of the fund
Introduction:
Net asset value of the fund is the value of the portfolio owned by the fund on a particular date netted off all the liabilities to the outsiders.
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Students have asked these similar questions
City Street Fund has a portfolio of $450 million and liabilities of $10 million.a. If 44 million shares are outstanding, what is net asset value?b. If a large investor redeems 1 million shares, what happens to the (i) portfolio value, (ii) shares outstanding, and (iii) NAV?
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.)
Suppose you own a mutual fund which has 19,000,000 shares outstanding. If its total assets are $36,000,000 and its liabilities are $5,000,000, find the net asset value (in $) of the fund. Round to the nearest cent.
$
Chapter 4 Solutions
INVESTMENTS(LL)W/CONNECT
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