Question

An open-end mutual fund has the following stocks: Stock Shares Stock Price A 7,500 $ 95...

An open-end mutual fund has the following stocks:

Stock Shares Stock Price
A 7,500 $ 95
B 33,000 10
C 4,600 83
D 81,000 11

The fund has 53,000 shares and liabilities of $133,000. Assume the fund is sold with a front-end load of 6.5 percent. What is the offering price of the fund?

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Answer #1

Calculation of Offering Price of Fund-

Offering Price = $44.0379

CALCULATION OF NAV-

NAV = 41.1755

Total Assets = (7,500 * 95)+(33,000 * 10)+(4,600 * 83)+(81,000 * 11)

Total Assets = 23,15,300

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