CONNECT WITH LEARNSMART FOR BODIE: ESSE
11th Edition
ISBN: 9781265046392
Author: Bodie
Publisher: MCG
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Chapter 4, Problem 19PS
City Street Fund has a portfolio of $450 million and liabilities of $10 million. (LO 4.3)
a. If there are 44 million shares outstanding, what is the net asset value?
b. If a large investor redeems 1 million shares, what happens lo the portfolio value, to shares outstanding, and to NAV?
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City Street Fund has a portfolio of $420 million and liabilities of $30 million.
Required:a. If there are 30 million shares outstanding, what is the net asset value?
b-1. If a large investor redeems 3 million shares, what happens to the portfolio value? (Enter your answer in dollars not in millions.)
ded
City Street Fund has a portfolio of $432 million and liabilities of $12 million.
Required:
a. If there are 28 million shares outstanding, what is the net asset value?
Net asset
value
$ 15 Per share
b-1. If a large investor redeems 2 million shares, what happens to the portfolio value? (Enter your ansv er in
dollars not in millions.)
Portfolio value
decreases
to
Shares outstanding decreases
b-2. If a large investor redeems 2 million shares, what happens to shares outstanding? (Enter your answer in
dollars not in millions.)
402 X
to $
26 X
Problem #2. Calculate the total cost, proceeds, total
gain (or loss), and return on investment for the given
mutual fund. The offer price is the purchase price of the
shares, and the net asset value is the price at which the
shares were later sold. Show your work.
Shares
Offer Totall
Price Cost
300 $10.35| ?
Total
Per Share Gain
Dividends (or
Loss)
?
Net
Asset Proceeds!.
Value
$12.95
?
.76
Returr
Investn
%
Chapter 4 Solutions
CONNECT WITH LEARNSMART FOR BODIE: ESSE
Ch. 4 - Prob. 1PSCh. 4 - Prob. 2PSCh. 4 - Prob. 3PSCh. 4 - Prob. 4PSCh. 4 - Prob. 5PSCh. 4 - Prob. 6PSCh. 4 - Prob. 7PSCh. 4 - Prob. 8PSCh. 4 - Prob. 9PSCh. 4 - Prob. 10PS
Ch. 4 - An open-end fund has a net asset value of $10.70...Ch. 4 - Prob. 12PSCh. 4 - The composition of the Fingroup Fund portfolio is...Ch. 4 - Reconsider the Fingroup Fund in the previous...Ch. 4 - Prob. 15PSCh. 4 - Prob. 16PSCh. 4 - Prob. 17PSCh. 4 - Loaded-Up Fund charges a 12b-1 fee of 1% and...Ch. 4 - City Street Fund has a portfolio of $450 million...Ch. 4 - Prob. 20PSCh. 4 - Prob. 21PSCh. 4 - Prob. 22PSCh. 4 - Prob. 23PSCh. 4 - Prob. 24PSCh. 4 - Prob. 25PSCh. 4 - Prob. 26PSCh. 4 - Prob. 27PSCh. 4 - You expect a tax-free municipal bond portfolio to...Ch. 4 - Prob. 29PSCh. 4 - Prob. 30CCh. 4 - Prob. 1WMCh. 4 - Prob. 2WMCh. 4 - Prob. 3WM
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