The composition and information of number of shares and prices of Lumbini Fund Portfolio are given below: Stocks Shares Price (Rs.) A 2,000 110 B…
BBS Fundamentals of Investment · 2082 · Solved Question with Answer
The composition and information of number of shares and prices of Lumbini Fund Portfolio are given below:
| Stocks | Shares | Price (Rs.) |
| A | 2,000 | 110 |
| B | 3,000 | 120 |
| C | 4,000 | 130 |
| D | 5,000 | 140 |
The fund has accrued management fee obligation of Rs. 200,000.
There are 100,000 shares outstanding.
a. What is net assets value of the Lumbini fund?
b. What is percentage of premium or discount if the fund is currently selling in the market at Rs. 20 per share?
c. Suppose you purchased Lumbini fund at Rs. 19.20 per share, your plan is to hold it for one year. What would be your holding period return if you receive Rs. 2 as dividend and Rs. 1.50 as capital gain at the end of one year and then sell the fund at 10 percent discount of Rs. 25 per share?