Question: Question #2 Mutual Funds (a) What is the key difference between an open-end mutual fund and a closed-end mutual fund? (b) Suppose thatT. Rowe Price

Question #2 Mutual Funds

(a) What is the key difference between an open-end mutual fund and a closed-end mutual fund?

(b) Suppose thatT. Rowe Price Health Sciences Mutual Fund portfolio is comprised by the following stocks:

Stock Shares in Portfolio Price per share
Aetna 33,000 $19
Gilead Sciences 6,000 $98
Pharmacyclics 4,600 $89
UnitedHealth Group 82,500 $12

The fund has liabilities of $354,850. Suppose that there are 50,000 shares outstanding. What is the net asset value (NAV) of this fund?

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