To calculate the NAV of an open-end fund, the market value of the portfolio less liabilities is divided by which item to arrive at a per-unit basis?

Question

Quizplus · Accepted Answer

The NAV of an open-end fund is calculated by dividing the market value of the portfolio less liabilities by the number of units currently outstanding. This gives the per-unit basis value of the fund, which is the price at which investors can buy or sell the fund's units. A is incorrect because the original number of units may have changed over time due to redemptions or new issuances. C is incorrect because the maximum units to be issued may not necessarily have been issued yet. D is incorrect because using the average number of units in comparable funds is not relevant to calculating the NAV of a specific fund.

To Calculate the NAV of an Open-End Fund, the Market