Consider an index fund that contains the following four stocks: American Campus Communities, Inc. (ACC), Global Net Lease, Inc. (GNL), Jones Lang LaSalle Incorporated (JLL), and Merck & Co., Inc. (MRK). On March 30, 2022, the stock prices at close were: ACC $56.73 GNL $15.65 JLL $243.22 MRK $82.40 The mutual fund held the following numbers of shares in these companies: Shares (million) ACC 2.087 GNL 1.558 JLL 0.748 MRK 37.950 On March 30, the mutual fund had 25 million shares outstanding. Calculate the net asset value per mutual fund share (in dollars). During the day on March 30, the fund had a net cash inflow of $250 million. How many shares of MRK did the index fund manager have to purchase in order to maintain a portfolio with the same portfolio weights as at the start of the day? You should assume that the fund manager invests all net inflows in securities at market close prices on March 30. She holds no cash balance.
Consider an index fund that contains the following four stocks:
American Campus Communities, Inc. (ACC), Global Net Lease, Inc. (GNL), Jones Lang LaSalle Incorporated (JLL), and Merck & Co., Inc. (MRK).
On March 30, 2022, the stock prices at close were:
| ACC | $56.73 |
| GNL | $15.65 |
| JLL | $243.22 |
| MRK | $82.40 |
The mutual fund held the following numbers of shares in these companies:
| Shares (million) | |
| ACC | 2.087 |
| GNL | 1.558 |
| JLL | 0.748 |
| MRK | 37.950 |
On March 30, the mutual fund had 25 million shares outstanding. Calculate the net asset value per mutual fund share (in dollars).
During the day on March 30, the fund had a net
How many shares of MRK did the index fund manager have to purchase in order to maintain a portfolio with the same portfolio weights as at the start of the day? You should assume that the fund manager invests all net inflows in securities at market close prices on March 30. She holds no cash balance.
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