A mutual fund has an NAV of $10.60 with 268,300 shares outstanding. What is the value of the fund's assets if it has $211,400 in liabilities?

Question

Quizplus · Accepted Answer

To find the value of the fund's assets, we need to multiply the NAV by the number of shares outstanding:

$10.60 * 268,300 = $2,845,980

However, this is the gross asset value (GAV) of the fund. To find the net asset value (NAV), we need to subtract the liabilities:

$2,845,980 - $211,400 = $2,634,580

Therefore, the answer is C, $3,055,380, because that is the value of the fund's assets after subtracting the liabilities.

A Mutual Fund Has an NAV of $10