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On Monday an Equity Mutual Fund Has Cash of $150

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On Monday an equity mutual fund has cash of $150 and stocks worth $900. The fund has 100 shares outstanding. On Tuesday the stocks fall in value to $800 and 10 shares are then redeemed by the fund. Assuming that the fund uses its cash first to cover redemptions,what is the one-day rate of return to the remaining fund shareholders,and how much cash and stock does the fund now have?

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Definitions:

Boron Atom

The smallest particle of the element boron, with an atomic number of 5, known for its applications in fiberglass, semiconductors, and agriculture.

Trigonal Planar

A molecular geometry where a central atom is connected to three other atoms placed at the corners of an equilateral triangle.

Molecular Polarity

Molecular polarity refers to the distribution of electrical charges over the atoms in a molecule, affecting its interaction with other molecules and solvents.

Solvent Interaction

The interaction between a solvent and solute which leads to the dissolution of the solute into the solvent.

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