A mutual fund has a beginning balance of $100 million, earns interest of $10 million, receives dividends of $15 million, and has expenses of $5 million. If 10 million shares are outstanding, what is the NAV?

Question

Quizplus · Accepted Answer

The NAV (Net Asset Value) is calculated as (Beginning Balance + Interest Earned + Dividends - Expenses) / Number of Shares. So, ($100 million + $10 million + $15 million - $5 million) / 10 million shares = $12.00.

A Mutual Fund Has a Beginning Balance of $100 Million