A Mutual Fund Has 10,000 Shares of Stock D at a Price

question 12

Multiple Choice

A mutual fund has 10,000 shares of Stock D at a price of $34 and 15,000 shares of Stock E at a price of $41. The fund has liabilities of $87,000 and a NAV of $41.05. How many shares of the fund are outstanding?

• A) 20,612
• B) 23,246
• C) 24,324
• D) 21,145
• E) 18,306

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Definitions:

Interest Payment

The amount paid over a period for borrowing money or delaying the repayment of a debt, typically expressed as an annual percentage of the principal.

Maturity Date

The date on which a financial obligation or investment becomes due for payment or expires, marking the end of its term.

Bank Loan

A bank loan is a sum of money lent by a bank to a borrower at an agreed interest rate and repayment schedule.

Promissory Note

A written promise to pay a specified sum of money to a designated person or bearer at a fixed or determinable future time.