Net asset value (NAV) is determined by

Question

Quizplus · Accepted Answer

Net asset value (NAV) is calculated by dividing the total market value of all the assets held by the fund by the number of fund shares outstanding. This gives the per-share NAV of the fund. Hence, option B is the correct answer. Option A multiplies the total market value of assets by shares outstanding without dividing, which would give a value that is different from NAV. Option C is incorrect because NAV is not related to the number of shareholders. Option D and E are incorrect because NAV is not related to supply and demand for the investment company stock in either the primary or secondary markets.

Net Asset Value (NAV) Is Determined by