An open-end mutual fund owns 1500 share 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

The NAV of the fund's share is calculated by taking the total value of all the assets held by the fund (in this case, Krispy Kreme, Ben & Jerry's, and Pepsi) and dividing by the number of fund shares outstanding. Using the given information, we can calculate the NAV as follows: [(1500*12) + (1000 * 43) + (2000 * 50)]/3500 fund shares = $46. Therefore, the best choice is C with a NAV of $46.

An Open-End Mutual Fund Owns 1500 Share of Krispy Kreme