Question: What will happen to the number of shares outstanding for the fund? Round your answer to the nearest integer. O The number of fund shares outstanding will increase by 2,000 shares. O The number of fund shares outstanding will not change. O The number of fund shares outstanding will increase by 10,000 shares. O The number of fund shares outstanding will increase by 5,000 shares.
Question: What will happen to the number of shares outstanding for the fund? Round your answer to the nearest integer. O The number of fund shares outstanding will increase by 2,000 shares. O The number of fund shares outstanding will not change. O The number of fund shares outstanding will increase by 10,000 shares. O The number of fund shares outstanding will increase by 5,000 shares.
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:On May 17, 2021, Parnassus Core Equity Fund, an open-end mutual fund, has the following assets and prices
at 4:00 PM.
Stock
Shares owned
Price
Seagate Technology PLC
2,000
$97.00
Western Digital Corp.
5,000
$71.00
Carnival Corp.
4,500
$27.00
Norwegian Cruise Line Holdings Ltd.
12,000
$28.00
Royal Caribbean Group
400
$85.00
Fox Corp.
13,000
$37.00
Walt Disney Co.
3,500
$173.00
AmerisourceBergen Corp.
2,500
$116.00
A new investor sends the fund a check for $125,960.54 before 4 PM on May 17, 2021. The fund charges
3.70% front-end load. Assume that the manager uses the received money to purchase 1,000 shares of
Western Digital Corp., 500 shares of Carnival Corp., 100 shares of Royal Caribbean Group, and 500 shares of
AmerisourceBergen Corp. at their closing prices, and the rest (if there is any) is held as cash.
Question: What will happen to the number of shares outstanding for the fund? Round your answer to the
nearest integer.
O The number of fund shares outstanding will increase by 2,000 shares.
O The number of fund shares outstanding will not change.
O The number of fund shares outstanding will increase by 10,000 shares.
O The number of fund shares outstanding will increase by 5,000 shares.
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