The Capitalist Mutual Fund's portfolio is valued at $40 million.The fund has liabilities of $2 million,and the investment company sponsoring the fund has issued 1,250,000 shares.What is the fund's net asset value?

Question

Quizplus · Accepted Answer

Net asset value = (Portfolio value - Liabilities) / Number of shares= ($40 million - $2 million) / 1,250,000= $38 million / 1,250,000= $30.40

The Capitalist Mutual Fund's Portfolio Is Valued at $40 Million