Exhibit 17-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
Suppose ABC Mutual fund owned only 4 stocks as follows: $$\begin{array} { c c c }
\text { Stack } & \text { Shares } & \text { Price } \
\hline W & 2500 & \$ 11 \
\mathbf { X } & 2100 & 14 \
\mathbf { Y } & 2700 & 23 \
Z & 1900 & 15
\end{array}$$
-Refer to Exhibit 17-1. The fund originated by selling $100,000 of stock at $10.00 per share. What is its current NAV?

Question

Exhibit 17-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
Suppose ABC Mutual fund owned only 4 stocks as follows: $$\begin{array} { c c c } 
\text { Stack } & \text { Shares } & \text { Price } \
\hline W & 2500 & \$ 11 \
\mathbf { X } & 2100 & 14 \
\mathbf { Y } & 2700 & 23 \
Z & 1900 & 15
\end{array}$$
-Refer to Exhibit 17-1. The fund originated by selling $100,000 of stock at $10.00 per share. What is its current NAV?

Quizplus · Accepted Answer

The Net Asset Value (NAV) is calculated by dividing the total value of the fund's assets by the number of shares outstanding. First, calculate the total value of the assets:- W: 2500 shares * $11 = $27,500- X: 2100 shares * $14 = $29,400- Y: 2700 shares * $23 = $62,100- Z: 1900 shares * $15 = $28,500Total value = $27,500 + $29,400 + $62,100 + $28,500 = $147,500The fund originated by selling $100,000 of stock at $10.00 per share, so there were 10,000 shares originally sold.NAV = Total value of assets / Number of shares = $147,500 / 10,000 = $14.75

Exhibit 17-1 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

Exhibit 17-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)