Question

C. Assume you purchased a low load fund at GHS10.30 with a net asset value of...

C. Assume you purchased a low load fund at GHS10.30 with a net asset value of GHS10.00, Required: i. Calculate the percentage load of the fund 2 marks ii. Calculate the new NAV if the fund’s net asset value went up 33.72%. 2 marks iii. Calculate the cedi profit or loss per share based on your purchase price 2 marks

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

i. percentage load of the fund

percentage load of the fund = (Purchased Price of NAV - Actual NAV) / Actual NAV

= (10.30 - 10.00) / 10.00

= 0.3 / 10

= 0.03   = 3%

Ans : percentage load of the fund = 3%

ii. the new NAV if the fund’s net asset value went up 33.72%

New NAV = ActualNAV * ( 1+ Percentage Increase)

= 10.00 * ( 1 + 33.72%)

= 13.3720

Ans :  new NAV of the fund = 13.3720

iii. Calculate the cedit profit or loss per share based on your purchase

Profit/loss per share = New NAV of the Fund - Purchased Price of NAV

= 13.3720 - 10.30

= 3.0720

Ans : Profis per share based on your purchase = 3.0720

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Global Growth Fund is a load fund with a 4 percent front load fee. It...
The Global Growth Fund is a load fund with a 4 percent front load fee. It started the year with a net asset value (NAV) of $16.00. During the year the fund distributed $1.25, and at the end of the year its NAV was $17.65. What was the fund's return, and what was an investor's return? Round your answers to two decimal places. The fund's return:   % Return on the individual's investment:   % Why are they different? The answers are different because...
You purchased 500 shares of the New Fund at a price of $30 per share at...
You purchased 500 shares of the New Fund at a price of $30 per share at the beginning of the year. You paid a front-end load of 3%. The securities in which the fund invests increase in value by 15% during the year. The fund’s expense ratio is 1%. What is your rate of return on the fund if you sell your shares at the end of the year? (Hints: (i) the offering price was above $30; (ii) calculate expenses...
The Global Growth Fund is a load fund with a 4 percent front load fee. It...
The Global Growth Fund is a load fund with a 4 percent front load fee. It started the year with a net asset value (NAV) of $16.00. During the year the fund distributed $1.15, and at the end of the year its NAV was $17.80. What was the fund's return, and what was an investor's return? Round your answers to two decimal places. The fund's return: Return on the individual's investment: Why are they different? The answers are different because...
You invested in the? no-load OhYes Mutual Fund one year ago by purchasing 600 shares of...
You invested in the? no-load OhYes Mutual Fund one year ago by purchasing 600 shares of the fund at the net asset value of ?$ 24.51 per share. The fund distributed dividends of ?$2.11 and capital gains of ?$1.58. ?Today, the NAV is ?$26.20. If OhYes was a load fund with a 3.5?% ?front-end load, what would be the? HPR?
1.You invested in the​ no-load OhYes Mutual Fund one year ago by purchasing 800 shares of...
1.You invested in the​ no-load OhYes Mutual Fund one year ago by purchasing 800 shares of the fund at the net asset value of ​$25.75 per share. The fund distributed dividends of ​$1.81 and capital gains of ​$1.64. ​Today, the NAV is ​$26.84. If OhYes was a load fund with a 2​% ​front-end load, what would be the​ HPR? 2.One year​ ago, Super Star​ Closed-End Fund had a NAV of​$10.38 and was selling at​ a(n) 16% discount.​ Today, its NAV...
A mutual fund's net asset value is $39.30, but the fund charges a 3 percent load...
A mutual fund's net asset value is $39.30, but the fund charges a 3 percent load fee (front-loaded) and an exit fee of 1 percent (if redeemed in 6 motnhs) of net asset value. An individual client purchases 10 shares of the mutual fund on Jan 5 of year 20X1. During the year 20X1, the fund distributes $3.45 capitial gain and $0.75 dividend income. The asset value rises to $42.12 on Jan 5 of year 20X2 and the investor redeems...
23 . A closed-end fund starts the year with a net asset value of $21. By...
23 . A closed-end fund starts the year with a net asset value of $21. By year-end, NAV equals $20.5. At the beginning of the year, the fund is selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 4% discount to NAV. The fund paid year-end distributions of income and capital gains of $2.50. What is the rate of return to an investor in the fund during the year? hello...
Suppose that at the start of the year, a no-load mutual fund has a net asset...
Suppose that at the start of the year, a no-load mutual fund has a net asset value of $27.95 per share. During the year, it pays its shareholders a capital gain and dividend distribution of $1.12 per share and finishes the year with an NAV of $30.80. What is the return to an investor who holds 258.156 shares of this fund in his (nontaxable) retirement account? Do not round intermediate calculations. Round your answer to two decimal places.   % What...
You invested in the​ no-load OhYes Mutual Fund one year ago by purchasing 700 shares of...
You invested in the​ no-load OhYes Mutual Fund one year ago by purchasing 700 shares of the fund at the net asset value of ​$25.46 per share. The fund distributed dividends of ​$2.67 and capital gains of ​$2.12. ​Today, the NAV is ​$27.15. What was your holding period​ return? Your holding period return was _​%. ​
You purchased 500 shares of the Select Fund at a price of $30 per share at...
You purchased 500 shares of the Select Fund at a price of $30 per share at the beginning of the year. You paid a front-end load of 2%. The securities in which the fund invests increase in value by 15% during the year. The fund’s expense ratio is 1.5%. What is your rate of return on the fund if you sell your shares at the end of the year? Give your answer as a percentage (omit percent sign).
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT