Eveningstar open-end fund has 1,000 shares outstanding and has the following assets in its portfolio: 100 shares of Procter & Gamble (P&G) priced at $30.00, 300 shares of Intel priced at $50.00 and 200 shares of Microsoft priced at $60.00. The Morningstar closed-end fund has the following stocks in its portfolio: 300 shares of P&G and 300 shares of Microsoft. It has a total of 500 shares outstanding. What is the NAV of both funds?

Question

Quizplus · Accepted Answer

To calculate the NAV of Eveningstar open-end fund:

Total value of assets = (100 x $30) + (300 x $50) + (200 x $60) = $10,000

NAV = Total value of assets / Number of shares outstanding = $10,000 / 1,000 = $30.00

To calculate the NAV of Morningstar closed-end fund:

Total value of assets = (300 x $30) + (300 x $60) = $27,000

NAV = Total value of assets / Number of shares outstanding = $27,000 / 500 = $54.00

Therefore, the answer is (C) $30.00 and $54.00.

Eveningstar Open-End Fund Has 1,000 Shares Outstanding and Has the Following