You can see from the table that the market value of the fund’s assets is ____ ? If the fund has $10,725.98 in liabilities and 6,000 shares outstanding, the net asset value (NAV) of a share in this mutual fund is ________?
You can see from the table that the market value of the fund’s assets is ____ ? If the fund has $10,725.98 in liabilities and 6,000 shares outstanding, the net asset value (NAV) of a share in this mutual fund is ________?
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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1. Computing the net asset value of a mutual fund investment
Most mutual funds invest money in hundreds of stocks, bonds, short-term securities, or other securities and assets; then, shares of the funds themselves are sold to individual investors. To understand how the value of a mutual fund’s share is calculated based on the values of the assets it holds, consider the following simplified example of a mutual fund that owns shares of only four different stocks.
|
Stock Symbol
|
Current Market Price
|
Number of Shares
|
Total Value of Shares
|
|---|---|---|---|
| GlbEx | $98.32 | 950 | $93,404.00 |
| TmRE | 17.77 | 1,150 | 20,435.50 |
| PFIN | 70.81 | 850 | 60,188.50 |
| BRRT | 35.21 | 1,150 | 40,491.50 |
You can see from the table that the market value of the fund’s assets is ____ ? If the fund has $10,725.98 in liabilities and 6,000 shares outstanding, the net asset value (NAV) of a share in this mutual fund is ________?
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