MGT226 Foundation Of Financial Systems

Foundation Of Financial SystemsTU Board 2082

A mutual fund has 10,000 shares of Company A currently trading at Rs 250, and 20,000 shares of Company B currently trading at Rs 240. The fund has issued 600,000 shares and current liability is as…

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A mutual fund has 10,000 shares of Company A currently trading at Rs 250, and 20,000 shares of Company B currently trading at Rs 240. The fund has issued 600,000 shares and current liability is as 100,000. a. What is the NAV of the mutual fund? b. If investors expect the price of the Company A's shares to increase to Rs 300 and price of Company B's shares to decline Rs 220 by the end of the year, what is the expected NAV at the end of the year? [4+6]

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