Question

The value of a mutual fund's assets less its liabilities, divided by the number of shares...

The value of a mutual fund's assets less its liabilities, divided by the number of shares outstanding is referred to as the fund's _____.

A) net asset value
B) offering price
C) open-end value
D) closed-end value
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
The answer is Option A.
The value of a mutual fund's assets less its liabilities, divided by the number of shares outstanding is referred to as the fund's net asset value.
The formula to calculate NAV is as under,
NAV = (Market Value of All Securities Held by Fund + Cash and Equivalent Holdings - Fund Liabilities) / Total Fund Shares Outstanding
The mutual fund NAV changes daily as the value of parameters mentioned in above formula fluctuates. NAV are like stock prices which
measures the value of one share of fund.
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
Consider a mutual fund with $680 million in assets at the start of the year and...
Consider a mutual fund with $680 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $3.5 million. The stocks included in the fund's portfolio increase in price by 7%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of .75%, which are deducted from portfolio assets at year-end....
1. The Money market mutual funds are generally less risky than a corporate bond mutual fund....
1. The Money market mutual funds are generally less risky than a corporate bond mutual fund. True False 2. A closed-end fund has total assets of $270 million and liabilities of $640,000. There are 25 million shares outstanding. What is the premium or discount on the fund if the shares are currently selling for $9.80 each? a. $10.77 premium b. $10.77 discount c. 9.01% premium d. 9.01% discount 3. A closed-end fund has total assets of $870 million and liabilities...
Book value is equal to: a. Assets-(Liabilities+Equity) b. Assets-(Liabilities/#of shares of common stock outstanding) c. Net...
Book value is equal to: a. Assets-(Liabilities+Equity) b. Assets-(Liabilities/#of shares of common stock outstanding) c. Net worth d. Assets/# of shares of common stock outstanding
Consider a mutual fund with $600 million in assets at the start of the year and...
Consider a mutual fund with $600 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2.7 million. The stocks included in the fund's portfolio increase in price by 9%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at year-end....
The New American Enterprise Mutual Fund's portfolio is valued at $133.8 million. The fund has liabilities...
The New American Enterprise Mutual Fund's portfolio is valued at $133.8 million. The fund has liabilities of $6.6 million, and the investment company sponsoring the fund has issued 5,300,000 shares. What is the fund's net asset value (NAV)? (Round your answer to 2 decimal places.) $21.29 NAV per share $26.49 NAV per share $34.36 NAV per share $24.00 NAV per share $18.83 NAV per share
Consider a mutual fund with $620 million in assets at the start of the year and...
Consider a mutual fund with $620 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $3.5 million. The stocks included in the fund's portfolio increase in price by 8%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at year-end....
Consider a mutual fund with $340 million in assets at the start of the year and...
Consider a mutual fund with $340 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2.4 million. The stocks included in the fund's portfolio increase in price by 9%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at year-end....
Consider a mutual fund with $480 million in assets at the start of the year and...
Consider a mutual fund with $480 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2.5 million. The stocks included in the fund's portfolio increase in price by 6%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at year-end....
A mutual fund's net asset value is $39.30, but the fund charges a 3 percent load...
A mutual fund's net asset value is $39.30, but the fund charges a 3 percent load fee (front-loaded) and an exit fee of 1 percent (if redeemed in 6 motnhs) of net asset value. An individual client purchases 10 shares of the mutual fund on Jan 5 of year 20X1. During the year 20X1, the fund distributes $3.45 capitial gain and $0.75 dividend income. The asset value rises to $42.12 on Jan 5 of year 20X2 and the investor redeems...
An open-end mutual fund has the following stocks: Stock Shares Stock Price A 8,500 $ 93...
An open-end mutual fund has the following stocks: Stock Shares Stock Price A 8,500 $ 93 B 33,000 22 C 6,000 79 D 81,000 11 If there are 55,000 shares of the mutual fund, what is the NAV? Net asset value:
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT