Question

Discuss how the net asset value (NAV) is determined and what is meant by market-to-market.

Discuss how the net asset value (NAV) is determined and what is meant by market-to-market.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Net assets value is the value of a mutual fund scheme's assets minus liabilities per unit. It is the price at which we sell or buy a unit of a mutual fund scheme. Formula for calculation = assets- liabilities÷ no. Of outstanding units.

Assets include closing market value of investment + accured income + cash and cash equivalents+ receivables.

Liabilities includes total short and long term liabilities ,accured expenses etc.

Mark to market means recording change in value of aasets to reflect it's current fair market value.investors mark their securities on a daily basis to ensure that a margin account is meeting it's minimum requirements. It provides a realistic image of a financial institution.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Net asset value (NAV) is determined by a. Supply and demand for the investment company stock...
Net asset value (NAV) is determined by a. Supply and demand for the investment company stock in the secondary market. b. The total market value of all its assets multiplied by the number of fund shares outstanding. c. Supply and demand for the investment company stock in the primary market. d. The total market value of all its assets divided by the number of shareholders. e. The total market value of all its assets divided by the number of fund...
Asset under management of 15500, liability of 200 and NAV of 25.5 on a market value...
Asset under management of 15500, liability of 200 and NAV of 25.5 on a market value weighted fund. Fund as 3 stocks A priced at 25/share 300 shares B priced at 15/share 400 shares C priced at 10 Rate of return on fund net of operating expenses is 8% a year. Back end load fees start at 4% falls to 0%. Each year by 1% A) how many shares in fund B) how many shares Stock C have C) if...
A closed-end fund starts the year with a net asset value of $15.00. By year-end, NAV...
A closed-end fund starts the year with a net asset value of $15.00. By year-end, NAV equals $15.20. At the beginning of the year, the fund was selling at a 1% premium to NAV. By the end of the year, the fund is selling at a 5% discount from NAV. The fund paid year-end distributions of income and capital gains of $1.30. a. What is the rate of return to an investor in the fund during the year? (Do not...
A closed-end fund starts the year with a net asset value of $29. By year-end, NAV...
A closed-end fund starts the year with a net asset value of $29. By year-end, NAV equals $30.80. At the beginning of the year, the fund is selling at a 4% premium to NAV. By the end of the year, the fund is selling at a 9% discount to NAV. The fund paid year-end distributions of income and capital gains of $3.20. a. What is the rate of return to an investor in the fund during the year? (Do not...
How does late trading and market timing dilute Net Asset Value?
How does late trading and market timing dilute Net Asset Value?
Total asset book value $1.2b and its market value now is $7.7b and liabilities $1.3b with...
Total asset book value $1.2b and its market value now is $7.7b and liabilities $1.3b with 700m outstanding shares. Find NAV.
What is meant by the ‘intrinsic value’ of an asset? What action would you take if...
What is meant by the ‘intrinsic value’ of an asset? What action would you take if you observed an asset that was selling at less than its intrinsic value? (Please explain as detailed as possible, and give some examples) Thank you!
23 . A closed-end fund starts the year with a net asset value of $21. By...
23 . A closed-end fund starts the year with a net asset value of $21. By year-end, NAV equals $20.5. At the beginning of the year, the fund is selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 4% discount to NAV. The fund paid year-end distributions of income and capital gains of $2.50. What is the rate of return to an investor in the fund during the year? hello...
C. Assume you purchased a low load fund at GHS10.30 with a net asset value of...
C. Assume you purchased a low load fund at GHS10.30 with a net asset value of GHS10.00, Required: i. Calculate the percentage load of the fund 2 marks ii. Calculate the new NAV if the fund’s net asset value went up 33.72%. 2 marks iii. Calculate the cedi profit or loss per share based on your purchase price 2 marks
A closed-end fund starts the year with a net asset value of $10. By year-end, its...
A closed-end fund starts the year with a net asset value of $10. By year-end, its net asset value equals $12. At the start of the year, the fund sells at a 5% discount to the NAV. At the end of year, the fund sells at a 2% premium. The fund paid year-end distributions of income and capital gains of $1 per share. Suppose an investor invests $10,000 at the start of the year. Please answer the following questions: 1....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT