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

question 15

Multiple Choice

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.

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Definitions:

Appreciation

An increase in the value of one currency relative to another currency.

Nanotechnology

The science and technology of creating and utilizing materials, devices, and systems by manipulating matter at the nanometer scale.

Economic Growth

An increase in the production of goods and services in an economy over a period, often measured as the percent rate increase in real gross domestic product (GDP).

Foreign Exchange Market

A global decentralized or over-the-counter market for the trading of currencies, enabling currency conversion for international trade and investment.