INVESTMENTS (LOOSELEAF) W/CONNECT
11th Edition
ISBN: 9781260465945
Author: Bodie
Publisher: MCG
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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 $10 million.a. If 44 million shares are outstanding, what is net asset value?b. If a large investor redeems 1 million shares, what happens to the (i) portfolio value, (ii) shares outstanding, and (iii) NAV?
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$
Chapter 4 Solutions
INVESTMENTS (LOOSELEAF) W/CONNECT
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Similar questions
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