The Marginal Mutual Fund's portfolio is valued at $50 million.The fund has liabilities of $10 million, and the investment company sponsoring the fund has issued 2,000,000 shares.What is the fund's net asset value per share?

Question

Quizplus · Accepted Answer

The net asset value (NAV) per share is calculated by subtracting the fund's liabilities from its assets to get the net assets, then dividing by the number of shares. Here, ($50 million - $10 million) / 2,000,000 shares = $40 million / 2,000,000 shares = $20.00 per share.

The Marginal Mutual Fund's Portfolio Is Valued at $50 Million