Consider a no-load mutual fund with $457 million in assets and 12 million shares at the start of the year, and $520 million in assets and 13.21 million shares at the end of the year. During the year investors have received income distributions of $2.25 per share, and capital gains distributions of $1.57 per share. Assume that the fund carries no debt. What is the NAV at the START of the year? Group of answer choices 36.11 33.07 39.47 38.08 37.78
Consider a no-load mutual fund with $457 million in assets and 12 million shares at the start of the year, and $520 million in assets and 13.21 million shares at the end of the year. During the year investors have received income distributions of $2.25 per share, and capital gains distributions of $1.57 per share. Assume that the fund carries no debt. What is the NAV at the START of the year? Group of answer choices 36.11 33.07 39.47 38.08 37.78
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Consider a no-load mutual fund with $457 million in assets and 12 million shares at the start of the year, and $520 million in assets and 13.21 million shares at the end of the year. During the year investors have received income distributions of $2.25 per share, and
What is the NAV at the START of the year?
Group of answer choices
36.11
33.07
39.47
38.08
37.78
Expert Solution
Step 1
The term net asset value or NAV is the price per share of the securities of the mutual funds that the investors purchase. The investors do not receive shares in which the mutual fund has invested, but only the units equivalent to the investment of the investor.
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