An open-end mutual fund owns 1,500 shares of Krispy Kreme priced at $12. The fund also owns 1,000 shares of Ben & Jerry's priced at $43,and 2,000 shares of Pepsi priced at $50. The fund itself has 3,500 of its own shares outstanding. What is the NAV of a fund's share?

Question

Quizplus · Accepted Answer

To calculate the NAV of the fund's share, we need to find the total value of the assets in the fund and divide by the number of outstanding shares. 
Total value of assets = (1,500 x $12) + (1,000 x $43) + (2,000 x $50) = $18,000 + $43,000 + $100,000 = $161,000 
Total number of shares outstanding = 3,500 
NAV = $161,000 / 3,500 = $46

An Open-End Mutual Fund Owns 1,500 Shares of Krispy Kreme