At the beginning of the year, the composition of the Blackrock mutual fund was as follows:
Stocks Number of Shares Price per share
Invested in
X 20 million $12
Y 30 million $31
Z 25 million $22
W 15 million $20
a) Today, the market prices of stocks X, Y, Z and W, are $15, $25, $25 and $18 respectively (Assume the number of shares of each stock owned by Blackrock remains unchanged, and that the fund liabilities remain unchanged as well). In addition, the fund just made a dividend distribution of $1 per share to investors. What is the new net asset value of the fund today? What is the rate of return of the fund between the beginning of the year and today?