Calculate the NAV of the following fund, assuming 35,000 shares are outstanding. Calculate the percentage change in the NAV of the fund on April 29th 2022. Stock Shares owned Price PYPL 3,000 $ 117.65 TWTR 5,000 $ 50.98 PG 9,000 $154.62 NVDA 6,000 $ 259.31 RTX 2,000 $98.81 Besides the underlying securities listed above, the fund shows on the Balance Sheet Cash Liabilities $ 155,000.- $ 18,500.- An investor comes the day after computing the above NAV and invests a quarter million USD in the fund. Assume no fees or expenses. The money manager buys 2,000 shares of PayPal and 1,500 of Twitter. a) Will the NAV increase or decrease? Why? b) Calculate the return on the investor's shares. How many did he buy with 250k$?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Calculate the NAV of the following fund, assuming
35,000 shares are outstanding. Calculate the
percentage change in the NAV of the fund on April
29th 2022.
Stock Shares owned Price
PYPL 3,000 $ 117.65
TWTR 5,000 $ 50.98
PG 9,000 $154.62
NVDA 6,000 $ 259.31
RTX 2,000 $98.81
Besides the underlying securities listed above, the
fund shows on the Balance Sheet
Cash
$ 155,000.-
Liabilities
$ 18,500.-
An investor comes the day after computing the
above NAV and invests a quarter million USD in the
fund. Assume no fees or expenses. The money
manager buys
2,000 shares of PayPal and 1,500 of Twitter.
a) Will the NAV increase or decrease? Why?
b) Calculate the return on the investor's shares. How
many did he buy with 250k$?
Transcribed Image Text:Calculate the NAV of the following fund, assuming 35,000 shares are outstanding. Calculate the percentage change in the NAV of the fund on April 29th 2022. Stock Shares owned Price PYPL 3,000 $ 117.65 TWTR 5,000 $ 50.98 PG 9,000 $154.62 NVDA 6,000 $ 259.31 RTX 2,000 $98.81 Besides the underlying securities listed above, the fund shows on the Balance Sheet Cash $ 155,000.- Liabilities $ 18,500.- An investor comes the day after computing the above NAV and invests a quarter million USD in the fund. Assume no fees or expenses. The money manager buys 2,000 shares of PayPal and 1,500 of Twitter. a) Will the NAV increase or decrease? Why? b) Calculate the return on the investor's shares. How many did he buy with 250k$?
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