Question

The ABC fund, a close end fund, consist of three securities- 1000 shares of Security A, which is currently trading at $35; 2000 shares of Security B, which is trading at $45; and 3000 shares of Security C, which is trading at $55;  

What is ABC funds' NAV if has $87 000 in net liabilities and 10 000 shares outstanding?

Answer 1

			N	P	V=N*P
			Number of Shares	Current Market Price	Value
		SECURITY A	1000	$35	$35,000
		SECURITY B	2000	$45	$90,000
		SECURITY C	3000	$55	$165,000
				Total	$290,000
	TV	Total Value of securities	$290,000
	L	Net Liability	$87,000
	AV=TV-L	Asset Value	$203,000
	n	Number of shares outstanding	10000
	NAV=AV/n	Net Asset Value (NAV)	$20.30
		NAV=$20.30