FINA 200 (JMSB EXAMS) PERSONAL FINANCE - LESSONS - LESSON 13:
INVESTING IN MUTUAL FUNDS - FINANCIAL PLANNING PROBLEMS
CONCORDIA UNIVERSITY
Lesson 13: Investing in Mutual Funds
Financial Planning Problems
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Question 1:
Calculating Net Asset Value. Given the following The net asset value per share is equal to the
information, calculate the net asset value for the current market value of the mutual fund’s portfolio
Altamira Bond mutual fund. (Obj. 1) minus the mutual fund’s liabilities divided by the
number of shares outstanding. For the above
Total assets $225,000,000 information, the net asset value is $50, as
calculated below.
Total liabilities 5,000,000
Net asset value = 225,000,000 - 5,000,000
Total number of shares 4,400,000 4,400,000
= $50 per share
Question 2:
Calculating Net Asset Value. Given the following The net asset value per share is equal to the
information, calculate the net asset value for the current market value of the mutual fund’s portfolio
New Empire smallcap mutual fund. (Obj. 1) minus the mutual fund’s liabilities divided by the
number of shares outstanding. For the above
Total assets $350,000,000 information, the net asset value is $20, as
calculated below.
Total liabilities 10,000,000
Net asset value = 350,000,000 - 10,000,000
Total number of shares 17,000,000 17,000,000
= $20 per share
Question 3:
Calculating Sales Fees. Jane Tong invested Jane must pay $825 for commission, as illustrated
$15,000 in the ADA Diversified Futures Mutual below. (p. 398)
Fund. The fund charges a 5.5-percent commission
$825 Commission = $15,000 x 0.055
when shares are purchased. Calculate the amount
of commission Jane must pay. (Obj. 1)
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