A mutual fund's holdings are determined to be $1,500,000,000 with $250,000,000 in liabilities and 100,000,000 shares outstanding.What is the funds' NAV?
A)$125.00
B)$15.00
C)$12.50
D)$150.00

Question

Quizplus · Accepted Answer

The formula for calculating NAV is:
NAV = (total assets - total liabilities) / number of shares outstanding
Plugging in the given values:
NAV = ($1,500,000,000 - $250,000,000) / 100,000,000
NAV = $12.50

A Mutual Fund's Holdings Are Determined to Be $1,500,000,000 with $250,000,000