Question

An open-end mutual fund has the following stocks:

Stock	Shares	Stock Price
A	9,500	$91
B	33,000	20
C	10,000	75
D	68,000	13

There are 57,000 shares of the mutual fund, and liabilities of $150,000. What is the NAV of the fund? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Net asset value

$

Answer 1

NAV is the net assets of the fund divided by no of shares:

First we calculate the asset value of each stock

Then we sum up and subtract the liabilities

Stock	Shares	Stock Price	Assets
A	9,500	$91	$864,500
B	33,000	20	$660,000
C	10,000	75	$750,000
D	68,000	13	$884,000
		Total assets	$3,158,500
		Liabilities	$150,000
		Net Assets	$3,008,500
		#Shares	57,000.00
		NAV	52.78