Manozo, Pamela L.

BSA3-A

7 Task Performance 1

I. MULTIPLE CHOICE
1. b
2. c
3. d
4. a
5. d
6. a
7. d
8. a
9. d
10. d

II. PROBLEM SOLVING

1.

The total market value of shares today (450,000,000.00*95%) P427,000,000.00

Add: Interest and dividends received today 12,000,000.00
Less: Expenses incurred today (P427,000,000.00x 1.5%) (6,412,500.00)
The market value of the fund (NAV) P433,087,500.00

Then, determine the 𝑁𝐴𝑉𝑝𝑆.

𝑁𝑒𝑡 𝑎𝑠𝑠𝑒𝑡 𝑣𝑎𝑙𝑢𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 (𝑁𝐴𝑉𝑝𝑆) = 𝑀𝑎𝑟𝑘𝑒𝑡 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑓𝑢𝑛𝑑 ÷ 𝑛𝑢𝑚𝑏𝑒 𝑜𝑓 𝑠ℎ𝑎𝑟𝑒𝑠
= P433,087,500.00 ÷ 3,000,000
= P144.36 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡

Lastly, determine the unit of participation.

𝑈𝑛𝑖𝑡 𝑜𝑓 𝑝𝑎𝑟𝑡𝑖𝑐𝑖𝑝𝑎𝑡𝑖𝑜𝑛 = 𝐼𝑛𝑣𝑒𝑠𝑡𝑒𝑑 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 ÷ 𝑁𝐴𝑉𝑝𝑈

= 𝑃500,000 ÷ 𝑃144.36 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡
= 3,463.50 units
2.

The total market value of shares today (650,000,000.00*105%) P682,500,000.00

Add: Interest and dividends received today 6,000,000.00
Less: Expenses incurred today (P682,500,000.00x 3%) (20,475,000.00)
The market value of the fund (𝑁𝐴𝑉) P668,025,000.00
 Then, determine the 𝑁𝐴𝑉𝑝.

𝑁𝑒𝑡 𝑎𝑠𝑠𝑒𝑡 𝑣𝑎𝑙𝑢𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 (𝑁𝐴𝑉𝑝𝑈) = 𝑀𝑎𝑟𝑘𝑒𝑡 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑓𝑢𝑛𝑑 ÷ 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠
= P668,025,000.00 ÷ 8,000,000
= P83.50 per unit

III. CASE ANALYSIS

1. Arya Starks should take direct investment. Since a direct investor is wholly responsible
for the asset, and has control over it, which is one of her investment objectives. As an
investor she need to be aware that doing direct investment also has advantages and
disadvantages. You need to be aware of the risks involved, and she should always seek
financial advice before she commit her investment.

2. Jon Snow Corporation should take indirect investment. Mutual funds offer investors a
great way to diversify their holdings instantly and also mutual fund is duly regulated by
the Securities and Exchange Commission (SEC). Where you can only buy stocks that are
traded in the Philippines Stock Exchange (PSE). Mutual fund is little risky, but if the
company investment horizon is for longer period, then definitely they are going to
create a huge wealth.

3. Jon Snow Corporation should take indirect investment. Mutual funds offer investors a
great way to diversify their holdings instantly and mutual fund is duly regulated by the
Securities and Exchange Commission (SEC). Where you can only buy stocks that are
traded in the Philippines Stock Exchange (PSE). Mutual fund is little risky, but if the
company investment horizon is for longer period, then definitely they are going to
create a huge wealth.