Question

Use the information in the table below to answer the following question.

Name of Fund
NAV
Offer Price
Upton Group
$18.47
$18.96
Green Energy
$17.29
$18.01
TJH Small-Cap
$18.43
$19.05
WHI Health
$20.96
NL

Tracy buys 150 shares of Upton Group and 100 shares of WHI Health. What is Tracy’s total investment?
a.
$4,940.00
b.
$5,040.00
c.
$5,914.50
d.
$5,988.00

Answer 1

Use the offer price for Upton Group and the NAV for WHI Health (NL = no-load, so purchase at NAV).

Upton: 150 × $18.96 = $2,844.00
WHI Health: 100 × $20.96 = $2,096.00
Total = $2,844.00 + $2,096.00 = $4,940.00

Answer: a. $4,940.00