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##### Do all calculations using 9 decimal places, retain the 9 decimal places throughou

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**Question**

Do all calculations using 9 decimal places, retain the 9 decimal places throughout the;calculations, then when you report answers round to 2 decimal places. Examples: If the;answer is in years, i.e. 9.55769321 report 9.56. If the answer is in dollars. i.e.;$56,987.55555 report to the nearest cent 56,987.56. If the answer is in percent terms;i.e..104478324, then report 10.45. You need to be very precise with rounding and;reporting.;1. An open-end fund has a net asset value of $11.28 per share. It is sold with a front-end;load of 4%. What is the offering price?;$;(8 points);2. If the offering price of an open end fund is $49.79 per share and the fund is sold with a;front-end load of 3.5%, what is its net asset value?;$;(8 points);3. The composition of the Dominion Fund portfolio is as follows;STOCK;SHARES;PRICE;A;200,000;$35.94;B;300,000;$51.77;C;400,000;$15.70;D;600,000;$23.00;3a.The fund has not borrowed any funds, but its accrued management fee with the;portfolio manager currently totals $30,000. There are 3 million shares outstanding. What;is the net asset value of the fund?;$;(8 points);3b. Assume that 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 $19 per share, what is the portfolio turnover rate?;%;(8 points);4. The Closed Fund is a closed-end fund with a portfolio currently worth $283 million. It;has liabilities of $3 million and 7 million shares outstanding.;4a. What is the NAV of the fund?;$;(8 points);4b. If the fund sells for $38.78 per share, what is the premium or discount (-) as a percent;of NAV?;%;(8 points);5. Monarch Mutual Fund started the year with a net asset value of $15.02. By year-end;its NAV equaled $13.87. The fund paid year-end distributions of income and capital;gains of $.68. What was the rate of return to an investor in the fund?;%;(10 points);6. A closed-end fund starts the year with an NAV of $10.57. By year end, NAV equals;$11.23. At the beginning of the year, the fund is selling at a 2% 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 $.56.;6a.What is the rate of return to an investor in the fund during the year?;%;(8 points);6b. Assume this fund is an open end fund, what is the rate of return?;%;(8 points);7. Big Blue Mutual Fund has $360 million in assets at the start of the year and 10 million;shares outstanding. The fund invests in a portfolio of stocks that provides dividend;income at the end of the year of $3 million. The stocks in the funds portfolio increase in;price by 8%, but no securities are sold so there are no capital gains distributions. The;fund charges 12b-1 fees of 1%, which are deducted from portfolio assets at year end.;7a.What is the NAV at the beginning of the year?;$;(8 points);7b.What is the NAV at the end of the year?;$;(8 points);7c.What is the rate of return for an investor in the fund?;%;(10 points);View Full Attachment

Paper#26099 | Written in 18-Jul-2015

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