1. Suppose the fund in the previous problem has liabilities of $110,000. What is the NAV of the fund now?
2. In the previous problem (#2), assume the fund is sold with a 6.50 percent front-end load. What is the offering price of the fund?
3. Suppose the fund in the previous problem has liabilities of $110,000. What is the NAV of the fund now?
4. CAPM: If the risk-free rate is 0.04, the risk premium of the market is 0.12, and the beta of the firm is 1.4, what is the required rate of return?