A mutual fund has 2,000 shares of stock at a price of $70 and 6,000 shares of another stock at a price of $30. If the fund has an NAV of $17.10, how many shares of the mutual fund are outstanding?

Question

Quizplus · Accepted Answer

The total value of the stocks is (2,000 * $70) + (6,000 * $30) = $140,000 + $180,000 = $320,000. The NAV is the total value of the fund divided by the number of shares outstanding. Therefore, $320,000 / $17.10 = 18,713 shares outstanding.

A Mutual Fund Has 2,000 Shares of Stock at a Price