Question

In: Finance

An open-end mutual fund has the following assets. Please calculate Net Asset Value per share and...

An open-end mutual fund has the following assets. Please calculate Net Asset Value per share and total cost of buying one share of the mutual fund.

Stock Shares Price
A 2,000,000 $45.00
B 2,000,000 $78.00
C 2,000,000 $13.00
D 2,000,000 $26.00
Item Value
front-end load $10 per share
back-end load $5 per share
current mutual fund shares 2,000,000
management fees 0.15% per month

NAV = $

Total Purchasing Cost per fund share = $

Solutions

Expert Solution

Working: -

PLEASE UPVOTE FOR THE SOLUTION


Related Solutions

An open-end mutual fund has the following assets. Please calculate Net Asset Value per share and...
An open-end mutual fund has the following assets. Please calculate Net Asset Value per share and total cost of buying one share of the mutual fund. Stock Shares Price A 2,000,000 $45.00 B 2,000,000 $78.00 C 2,000,000 $13.00 D 2,000,000 $26.00 Item Value front-end load $10 per share back-end load $5 per share current mutual fund shares 2,000,000 management fees 0.15% per month What is the NAV? What is Total Purchasing Cost Per Fund share?
An open-end fund has a net asset value of $8.09 per share. It is sold with...
An open-end fund has a net asset value of $8.09 per share. It is sold with a front-end load of 4%. What is the selling price? Round your answer to the nearest cent (2 decimal places).
The Closed Fund has a net asset value of $36.14 per share. If the fund sells...
The Closed Fund has a net asset value of $36.14 per share. If the fund sells for $34.44 per share, what is its premium or discount as a percent of net asset value? Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.
A hedge fund with net asset value of $48 per share currently has a high water...
A hedge fund with net asset value of $48 per share currently has a high water mark of $51. Suppose it is January 1, the standard deviation of the fund’s annual returns is 45%, and the risk-free rate is 5%. The fund has an incentive fee of 20%, but its current high water mark is $51, and net asset value is $48. a. What is the value of the annual incentive fee according to the Black-Scholes formula? (Do not round...
A hedge fund with net asset value of $56 per share currently has a high water...
A hedge fund with net asset value of $56 per share currently has a high water mark of $58. Suppose it is January 1, the standard deviation of the fund’s annual returns is 30%, and the risk-free rate is 4%. The fund has an incentive fee of 20%, but its current high water mark is $58, and net asset value is $56. a. What is the value of the annual incentive fee according to the Black-Scholes formula? (Do not round...
A hedge fund with net asset value of $52 per share currently has a high water...
A hedge fund with net asset value of $52 per share currently has a high water mark of $56. Suppose it is January 1, the standard deviation of the fund’s annual returns is 50%, and the risk-free rate is 3%. The fund has an incentive fee of 20%, but its current high water mark is $56, and net asset value is $52. a. What is the value of the annual incentive fee according to the Black-Scholes formula? (Do not round...
A hedge fund with net asset value of $43 per share currently has a high water...
A hedge fund with net asset value of $43 per share currently has a high water mark of $44. Suppose it is January 1, the standard deviation of the fund’s annual returns is 30%, and the risk-free rate is 2%. The fund has an incentive fee of 20%, but its current high water mark is $44, and net asset value is $43. a. What is the value of the annual incentive fee according to the Black-Scholes formula? (Do not round...
A hedge fund with net asset value of $70 per share currently has a high water...
A hedge fund with net asset value of $70 per share currently has a high water mark of $73. Suppose it is January 1, the standard deviation of the fund’s annual returns is 40%, and the risk-free rate is 4%. The fund has an incentive fee of 20%, but its current high water mark is $73, and net asset value is $70. a. What is the value of the annual incentive fee according to the Black-Scholes formula? (Do not round...
A hedge fund with net asset value of $66 per share currently has a high water...
A hedge fund with net asset value of $66 per share currently has a high water mark of $68. Suppose it is January 1, the standard deviation of the fund’s annual returns is 55%, and the risk-free rate is 3%. The fund has an incentive fee of 20%, but its current high water mark is $68, and net asset value is $66. a. What is the value of the annual incentive fee according to the Black-Scholes formula? (Do not round...
Suppose an open end mutual fund has $10000 worth of assets. There are 1000 shares outstanding....
Suppose an open end mutual fund has $10000 worth of assets. There are 1000 shares outstanding. (10 points) If the fund value rises by 8% and there is a 25 basis point management fee that is subtracted from the asset value at the end of the year, what is the return on a share of the fund? (10 points) Suppose that at the beginning of the year a new investor comes in and invests another $1000. If the same return...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT