Eveningstar Open-End Fund Has 1,000 Shares Outstanding and Has the Following

Eveningstar open-end fund has 1,000 shares outstanding and has the following assets in its portfolio: 100 shares of Procter & Gamble (P&G) priced at $30.00, 300 shares of Intel priced at $50.00 and 200 shares of Microsoft priced at $60.00. The Morningstar closed-end fund has the following stocks in its portfolio: 300 shares of P&G and 300 shares of Microsoft. It has a total of 500 shares outstanding. If the price of P&G shares rises to $35 and the price of Microsoft falls to $40.00, what is the new NAV of both funds?

A) $26.50 and $45.00.
B) $13.25 and $13.00.
C) $39.75 and $22.50.
D) $53.00 and $45.00.
E) $26.50 and $22.50.

Correct Answer:

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