Problem
Deutsche Bank Asset Management Software Index Fund portfolio has the following stocks:
|
Stock
|
Shares
|
Price
|
|
A
|
60000
|
80
|
|
B
|
70000
|
90
|
|
C
|
80000
|
100
|
The fund has borrowed $300,000 and its accrued management fee with the portfolio manager is $300,000. The fund has 1 million shares outstanding. The fund is an open end fund and charges a front-end load of 8.30%.
1. What is the net asset value of the fund?
2. What is the offering price of the fund?