Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 442 Weeks Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 25 May 2017 My Price 7.00

A mutual fund has 400 shares of General Electric, currently trading at $15

Problem 17-3 (LG 17-5)

A mutual fund has 400 shares of General Electric, currently trading at $15, and 400 shares of Microsoft, Inc., currently trading at $29. The fund has 1,000 shares outstanding.

 

a.

What is the NAV of the fund? (Round your answer to 2 decimal places. (e.g., 32.16))

 

  NAV $   

 

b.

If investors expect the price of General Electric to increase to $20 and the price of Microsoft to decline to $14 by the end of the year, what is the expected NAV at the end of the year? (Round your answer to 2 decimal places. (e.g., 32.16))

 

  Expected NAV $   

 

c.

Assume that the price of General Electric shares is realized at $20. What is the maximum price to which Microsoft can decline and still maintain the NAV as estimated in (a)? (Do not round intermediate calculations.)

 

  Maximum price $   

Answers

Alpha Geek
(8)
Status NEW Posted 25 May 2017 12:05 PM My Price 7.00

-----------

Attachments

file 1495716348-Answer.docx preview (216 words )
P-----------rob-----------lem----------- 17------------3 -----------(LG----------- 17------------5)----------- A----------- mu-----------tua-----------l f-----------und----------- ha-----------s 4-----------00 -----------sha-----------res----------- of----------- Ge-----------ner-----------al -----------Ele-----------ctr-----------ic,----------- cu-----------rre-----------ntl-----------y t-----------rad-----------ing----------- at----------- $1-----------5, -----------and----------- 40-----------0 s-----------har-----------es -----------of -----------Mic-----------ros-----------oft-----------, I-----------nc.-----------, c-----------urr-----------ent-----------ly -----------tra-----------din-----------g a-----------t $-----------29.----------- Th-----------e f-----------und----------- ha-----------s 1-----------,00-----------0 s-----------har-----------es -----------out-----------sta-----------ndi-----------ng.----------- a-----------. W-----------hat----------- is----------- th-----------e N-----------AV -----------of -----------the----------- fu-----------nd?----------- (-----------Rou-----------nd -----------you-----------r a-----------nsw-----------er -----------to -----------2 d-----------eci-----------mal----------- pl-----------ace-----------s. -----------(e.-----------g.,----------- 32-----------.16-----------)) -----------  ----------- N-----------AV -----------$ ----------- Â-----------  -----------b. -----------If -----------inv-----------est-----------ors----------- ex-----------pec-----------t t-----------he -----------pri-----------ce -----------of -----------Gen-----------era-----------l E-----------lec-----------tri-----------c t-----------o i-----------ncr-----------eas-----------e t-----------o $-----------20 -----------and----------- th-----------e p-----------ric-----------e o-----------f M-----------icr-----------oso-----------ft -----------to -----------dec-----------lin-----------e t-----------o $-----------14 -----------by -----------the-----------
Not Rated(0)