The Redux Fund has issued 500,000 shares to its investors,and it holds 100,000 shares of various companies worth $3 million.Therefore,the fund's NAV is $30 a share.

Question

Quizplus · Accepted Answer

The Net Asset Value (NAV) is calculated by dividing the total value of the fund's assets by the number of shares issued. In this case, the total assets are worth $3 million, and there are 500,000 shares issued. Therefore, the NAV is $3 million / 500,000 shares = $6 per share, not $30.

The Redux Fund Has Issued 500,000 Shares to Its Investors,and