You have been hired as a new fund manager by a large investment company that runs a
Question:
You have been hired as a new fund manager by a large investment company that runs a number of mutual funds. You have been given $100 million to invest and have been assigned to start a new fund. It is up to you to invest the money wisely.
A mutual fund invests its money in securities, such as stocks and bonds. For example, a mutual fund might have $10 million to invest. Assume that the entire amount is invested in individual shares of common stocks from companies such as General Motors, DuPont, and Bank of America. The mutual fund company's own common stock is also traded on the stock exchange. To continue the example, assume that the mutual fund starts with 1 million shares outstanding. The starting price of a share of its common stock would be $10 million divided by 1 million shares, or $10 a share. Assume further that the value of the purchased common stocks increases and is now worth $11 million. The value of a share of the mutual fund's common stock would now be $11 million divided by 1 million shares, or $11.00.
required documemts:spreadsheet on excel
-changing cell
-constants
-calculations
-income statement
and memo template
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford