Reference no: EM132218600
Ch. 4 & 5 Problem Questions
Ch. 4
8. Turnover (LO2, CFA3) A mutual fund sold $36 million of assets during the year andpurchased $32 million in assets. If the average daily assets of the fund were $96 million,what was the fund turnover?
9. Closed-End Funds (LO2, CFA2) A closed-end fund has total assets of $240 million andliabilities of $110,000. Currently, 11 million shares are outstanding. What is the NAV of thefund? If the shares currently sell for $19.25, what is the premium or discount on the fund?
10. Mutual Fund Returns (LO2, CFA1) You invested $10,000 in a mutual fund at thebeginningof the year when the NAV was $32.24. At the end of the year the fund paid $.24 in short-termdistributions and $.41 in long-term distributions. If the NAV of the fund at the end of the yearwas $35.23, what was your return for the year?
Ch. 5
1. Price-Weighted Divisor (LO4, CFA2) Able, Baker, and Charlie are the only three stocks inan index. The stocks sell for $93, $312, and $78, respectively. If Baker undergoes a 2-for-1 stocksplit, what is the new divisor for the price-weighted index?
4. Price-Weighted Index (LO4, CFA2) You are given the following information concerningtwostocks that make up an index. What is the price-weighted return for the index?
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Price per Share
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Shares Outstanding
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Beginning of Year
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End of Year
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Kirk, Inc.
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35,000
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$37
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$42
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Picard Co.
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26,000
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84
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91
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10. DJIA (LO4, CFA2) On May 9, 2012, the DJIA opened at 12,921.81. The divisor at that timewas .132129493. Suppose on this day the prices for 29 of the stocks remained unchanged andone stock increased $5.00. What would the DJIA level be at the end of the day?