Question

Nezzie invests in 300 shares of stock in the fund shown below.

Name of Fund
NAV
Offer Price
LKIT Mid-Cap
$16.58
$16.99

Nezzie plans to sell all of her shares when she can profit $5,000. What must the net asset value be in order for Nezzie to sell?
a.
$16.67
b.
$33.25
c.
$33.57
d.
$33.66


Please select the best answer from the choices provided

A
B
C
D

Answer 1

D

Purchase price = offer price = $16.99.
Required NAV = 16.99 + (5000 ÷ 300) = 16.99 + 16.6667 ≈ $33.66.