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the closed fund is a closed-end investment company with a portfolio currently worth $270 million. it has liabilities of $10 million and 15 million shares outstanding
a. What is the NAV of the fund? (Round your answer to 2 decimal places.) NAV $
b. If the fund sells for $63 per share, what is its premium or discount as a percent of NAV? (Input the amount as a positive value. Round your answer to 2 decimal places.)
The fund sells at an % (Click to select)premiumdiscount from NAV.

Respuesta :

A closed fund can be defined as a  fund which is  either closed to investors or has ceased to exist.

How does this work ?

  • NAV usually expresses the value of an investment fund.
  • It can be calculated as  
  • The total value of the fund's assets and subtracting its liabilities
  • NAV of the fund:
  • = ($270-$3)/4
  • = $66.75

In the second case , Fund share is selling below it's NAV.

Which it means by selling this at a discount.

  • Discount as a % of NAV:
  • = ($66.75-$63)/$63
  • = 5.92%

To know more about Funds from the given link

https://brainly.com/question/25534066

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