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Problem set 2 - BNFN 416 FINA 416 Investment Management...

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BNFN 416/ FINA 416 Investment Management Problem set 2 (Reference chapter 4) Q1) An open-end fund has a net asset value of $ 10.70 per share. It is sold with a front-end load of 6%. What is the offering price? Q2) If the offering price of open-end fund is $12.30 per share and the fund is sold with a front-end load of 5%, what is its net asset value? Q3) The composition of the X fund portfolio is as follows: Stock Share Price A 200,000 $ 35 B 300,000 40 C 400,000 20 D 600,000 25 a) The fund has not borrowed any, but its accrued management fee with the portfolio manager currently totals $ 30,000. There are 4 million shares outstanding. What is the net asset value of the fund? b) Reconsidering the X fund in part a. If during the year the portfolio manager sells all of the holdings of stock D and replaces it with 200,000 shares of stock E at $ 50 per share and 200,000 shares of stock F at $ 25 per share, what is the portfolio turnover rate? Q4) A closed-end fund started the year with a NAV of $ 12.00. By the year end, its NAV equaled $ 12.10. At the beginning of the year, the fund is selling at a 2%
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