Products & Their RisksQuestion 62 of 398
A mutual fund has total assets of $50 million, total liabilities of $2 million, and 4 million shares outstanding. What is the net asset value (NAV) per share?
a.$12.00
b.$12.50
c.$13.00
d.$10.00
Explanation
NAV per share equals (total assets minus total liabilities) divided by shares outstanding: ($50,000,000 - $2,000,000) / 4,000,000 = $12.00. NAV is the price at which shares are redeemed and, for a no-load fund, purchased.
Law Reference: Investment Company Act of 1940Practice all 398 questions free — no signup required.
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