Suppose that a mutual fund with 10 million shares outstanding has a portfolio with a market value of $430 million and liabilities of $30 million.

Question

Quizplus · Accepted Answer

The net asset value (NAV) per share can be calculated as follows:

NAV = (Portfolio value - Liabilities) / Shares outstanding 
NAV = ($430 million - $30 million) / 10 million 
NAV = $40

Therefore, the best choice is B.

Suppose That a Mutual Fund with 10 Million Shares Outstanding