A mutual fund had year-end assets of $437,000,000 and liabilities of $37,000,000.If the fund NAV was $60.12, how many shares must have been held in the fund?

Question

Quizplus · Accepted Answer

The net asset value (NAV) of a mutual fund is calculated by subtracting the fund's liabilities from its assets and then dividing by the number of shares outstanding. In this case, the fund's assets are $437,000,000 and its liabilities are $37,000,000, so the net assets are $437,000,000 - $37,000,000 = $400,000,000. Given the NAV is $60.12, the number of shares can be calculated as $400,000,000 / $60.12 ≈ 6,653,360.

A Mutual Fund Had Year-End Assets of $437,000,000 and Liabilities