An open-end mutual fund owns 70,000 shares of Target, 65,000 shares of Walmart and 148,000 shares of Best Buy. The fund has 150,000 shares outstanding.

a. At the end of trading on May 1, the shares’ prices were: $157.12 for Target, $151.59 for Walmart and $73.65 for Best Buy. What was the mutual fund’s NAV at the end of trading on May 1? 

b. Early on May 2, an investor bought 24,000 shares of the mutual fund. The mutual fund manager bought 8,500 shares of Target, 7,200 shares of Walmart and 36,000 shares of Best Buy with the proceeds from the sale of the mutual fund shares. At the end of trading on May 2, the shares’ prices were: $155.72 for Target, $151.18 for Walmart and $73.20 for Best Buy. What was the mutual fund’s NAV at the end of trading on May 2? 

Answer rating: 100% (QA)

a To calculate the Net Asset Value NAV of the mutual fund at the end of trading on May 1 you can use ... View the full answer