A mutual fund has total assets of $60,500,005 and liabilities of $7,987,654. If there are 10,123,456 shares outstanding, what is the net asset value of 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, NAV = ($60,500,005 - $7,987,654) / 10,123,456 = $52,512,351 / 10,123,456 ≈ $5.19.

A Mutual Fund Has Total Assets of $60,500,005 and Liabilities