An open-ended managed fund has a portfolio of shares and no bank deposits. The fund specialises in
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Question:
An open-ended managed fund has a portfolio of shares and no bank deposits. The fund specialises in shares that trade on a T+2 basis.
At 2:30pm on the 28th September 2020, the fund receives a buy order for new units. That payment for the buy order reaches the managed fund at 9am the following day but could not yet be allocated to shares (assuming a one day settlement of units).
On the 29th September 2020 at 4pm, the fund's portfolio of shares decreases in value by 15% compared to the value on the 28th September 2020 at 4pm.
What can we expect about the change in the units price between the 28th 4pm and 29th September 2020 4pm?
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
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