NAV (Net Asset Value) is the current market value of a mutual fund's portfolio minus the mutual fund's liabilities divided by the number of outstanding shares. It represents the per-share value of the fund and is calculated at the end of each trading day. It helps investors understand the true value of their investment in the mutual fund.

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NAV Is Equal to the

Question 95

Multiple Choice

NAV is equal to the

A) current market value of a mutual fund's portfolio minus the mutual fund's liabilities divided by the number of outstanding shares.
B) current market value of a share of ordinary share multiplied by the number of outstanding shares divided by the company's sales.
C) current market value of a company divided by the number of outstanding shares offered by that company.
D) current market value of a mutual fund's portfolio minus the mutual fund's administrative costs divided by the number of outstanding shares.
E) previous market value of a mutual fund's portfolio adding the revenue generated by the fund during a 12-month period.

Correct Answer: