The given information applies to the day of investment in a mutual fund. Find the net asset value or number of shares
purchased as indicated.
-$$\begin{array} { l c c c }
\hline \begin{array} { l }
\text { Amount } \
\text { Invested }
\end{array} & \begin{array} { c }
\text { Total Fund } \
\text { Assets }
\end{array} & \begin{array} { l }
\text { Total Fund } \
\text { Liabilities }
\end{array} & \begin{array} { c }
\text { Total Shares } \
\text { Outstanding }
\end{array} \
\hline \$ 52,600 & \$ 1.32 \text { billion } & \$ 133 \text { million } & 242 \text { million } \
\hline
\end{array}$$ Find the net asset value.
A)$8.11
B)$5.45
C)$4.90
D)$1187 million

Question

The given information applies to the day of investment in a mutual fund. Find the net asset value or number of shares
purchased as indicated.
-$$\begin{array} { l c c c } 
\hline \begin{array} { l } 
\text { Amount } \
\text { Invested }
\end{array} & \begin{array} { c } 
\text { Total Fund } \
\text { Assets }
\end{array} & \begin{array} { l } 
\text { Total Fund } \
\text { Liabilities }
\end{array} & \begin{array} { c } 
\text { Total Shares } \
\text { Outstanding }
\end{array} \
\hline \$ 52,600 & \$ 1.32 \text { billion } & \$ 133 \text { million } & 242 \text { million } \
\hline
\end{array}$$ Find the net asset value.
A)$8.11
B)$5.45
C)$4.90
D)$1187 million

Quizplus · Accepted Answer

The net asset value (NAV) is calculated by subtracting the total fund liabilities from the total fund assets and then dividing by the total shares outstanding. Using the given values: NAV = $\frac{1.32 \text{ billion} - 133 \text{ million}}{242 \text{ million}} = \frac{1187 \text{ million}}{242 \text{ million}} = 4.90$.

The Given Information Applies to the Day of Investment in a Mutual