Question

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?The composition of the Fingroup fund portfolio is as follows:Stock shares PriceA 200,000 $35B 300,000 40C 400,000 20D 600,000 25 The fund has not borrowed any funds but its accrued management fee with the portfolio manager currently totals 30,000. there are 4 million funds outstanding ? What is the net asset value of the fund?

Answer 1

Answer:

$10.49

Explanation:

The computation of the net asset value of the fund is shown below:

= (Market value of the assets - market value of the liabilities) ÷ number of oustanding shares

where,

Market value of assets is

= (200,000 × $35) + (300,000  × $40) +  (400,000 × 20) + (600,000 × 25)

= $42,000,000

So, the net asset value of the fund is

= ($42,000,000 - $30,000) ÷ (4,000,000)

= $10.49