Conditional Format Cel Question 12: A mutual fund is established with $50m assets in place, with 50m investment units each valued at $1. It borrows another 530m from a bank, and invest these funds in Australian Stocks. Ignoring the interest on the loan: > what would be the NAV of each investment unit if Australian stocks increase in value by! 55% b) what would be the NAV of each investment unit of Australian stocks decrease in value by: 40% c) What conclusion can you make about the effect of leverage on retures (in less than 50 words? 1OOO Boro tination Formatting Use Text Import Wizard... . ANE 3 $ % 4 % 5 6 7 8 E T R K Y U y K E H D B F A G J H P C 00 N C. C V M B