Question

1.

a. Assume that the value for all the stocks in a fund’s portfolio is currently $525,000. The fund has $460,000 in liabilities and has sold 1,300 shares of its fund to investors. What is the net asset value? ($45 , $20 , $50 , or $55).

b. A fund has a new asset value of $50. The value for all the stocks in the fund’s portfolio is currently $100,000. The fund has $80,000 in liabilities. How many shares of the fund have been sold to investors? (400 , 500 , 800 , or 1000)

Answer 1

1. A. Net value of total assets= (total assets-total liabilities)

=(525000-460000)= 65000

Number of shares= 1300

NAV( Per Share)= (total net value/total number of asseta)= (65000/1300)=50

Correct answer will be option (C)$ 50

2. Total net value of Assets of mutual fund=[total assets value-total liabilities value]

=[1,00,000- 80,000]= 20,000

NAV (per share)= 50

Number of shares=[total net asset value/value per share]

=[20,000/50]= 400.

Correct answer is option (A)400