Question

open-end fund a has 165 shares of att valued at $35 each and 30 shares of toro values at $75 each closed-end fund b has 75 shares of att and 72 shares of toro. both funds have 500 shares outstanding. what is the nav of fund a?

Answer 1

To calculate the NAV of Fund A, the value of its AT&T and Toro shares are totaled and divided by the number of shares outstanding, resulting in a NAV of $16.05 per share.

Step-by-step explanation:

The Net Asset Value (NAV) of Fund A can be calculated by adding the value of its investments and dividing it by the number of shares outstanding. Here’s how we can find the NAV for Fund A:

• First, calculate the total value of AT&T shares: 165 shares × $35 = $5,775
• Next, calculate the total value of Toro shares: 30 shares × $75 = $2,250
• Add these amounts to determine the total assets of Fund A: $5,775 + $2,250 = $8,025
• Finally, divide the total assets by the number of shares outstanding to find the NAV: $8,025 ÷ 500 shares = $16.05

Therefore, the NAV of Fund A is $16.05 per share.