Six years ago, Angie invested $50,000 that she inherited from her grandfather into a growth stock mutual fund. Each share of the fund cost $22/share. Yesterday, she perused a mutual fund quote on the Internet. The quotation showed (1) Year To Date Return; (2) Yield; (3) Net Asset Value; (4) Previous Close. Which of these will provide her with an indication of the present price per share she can expect to realize if she calls her broker tomorrow morning and asks her to sell the shares?

Question

Quizplus · Accepted Answer

The Net Asset Value (NAV) will provide Angie with an indication of the present price per share she can expect to realize if she sells the shares. The NAV is the total value of all the securities held by the fund divided by the number of shares outstanding. It is calculated at the end of each trading day and represents the current market value of one share in the mutual fund.

Six Years Ago, Angie Invested $50,000 That She Inherited from Her