Compute the Net Asset Value given the following total portfolio:
Stock A - 1000 shares - market value = $ 12,000
Stock B - 5000 shares - market value = $ 25,000
Stock C - 1000 shares - market value = $ 2,000
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A. B. C. D. E.C
NAV equals the total market value of all assets divided by the number of fund shares outstanding. ($12,000 + $25,000 + $2,000) / (1000 + 5000 + 1000) = $5.5714
To compute the Net Asset Value (NAV) of a portfolio, we need to divide the total market value of the portfolio by the total number of shares outstanding.
In this case, we have the following information:
Stock A:
Stock B:
Stock C:
To calculate the total market value of the portfolio, we sum up the market values of all the stocks:
Total market value = (Market value of Stock A) + (Market value of Stock B) + (Market value of Stock C) = ($12,000) + ($25,000) + ($2,000) = $39,000
Next, we need to calculate the total number of shares in the portfolio:
Total number of shares = (Number of shares of Stock A) + (Number of shares of Stock B) + (Number of shares of Stock C) = (1000) + (5000) + (1000) = 7000
Finally, we can compute the Net Asset Value (NAV) by dividing the total market value by the total number of shares:
NAV = Total market value / Total number of shares = $39,000 / 7000 ≈ $5.5714 (rounded to four decimal places)
Therefore, the correct answer is option C: 5.5714.