Suppose Under Mutual Fund owns only the 3 stocks shown below with no liabilities.
$$\begin{array} { c c c }
\text { Stack } & \text { dhares } & \text { PriEe } \
\hline \mathbf { A } & 2900 & 15 \
\mathrm {~B} & 3100 & 14 \
\mathrm { C } & 3200 & 12
\end{array}$$
The fund originated by selling $500,000 of stock at $50.00 per share.What is its current NAV?

Question

Suppose Under Mutual Fund owns only the 3 stocks shown below with no liabilities.
$$\begin{array} { c c c } 
\text { Stack } & \text { dhares } & \text { PriEe } \
\hline \mathbf { A } & 2900 & 15 \
\mathrm {~B} & 3100 & 14 \
\mathrm { C } & 3200 & 12
\end{array}$$
The fund originated by selling $500,000 of stock at $50.00 per share.What is its current NAV?

Quizplus · Accepted Answer

Original number of shares = $500,000 ¸ $50 = 10,000
 $$\begin{array} { c c c c } 
\text { Stack } & \text { Shares } & \text { Price } & \text { Market Price } \
\hline \mathrm { AA } & 290 [ & 15 & 43,500 \
\mathrm { BB } & 3100 & 14 & 43,400 \
\mathrm { CC } & 3200 & 12 & 38,400 \
& & \text { Tatal } = & 125,300
\end{array}$$ NAV = $125,300 ¸ 10,000 = $12.53

Suppose Under Mutual Fund Owns Only the 3 Stocks Shown