SIE practice questionmediumMutual Funds - NAV
A mutual fund has $150 million in assets, $10 million in liabilities, and 7 million shares outstanding. What is the NAV per share?
- A$21
- B$19
- C$20✓ Correct answer
- D$22
Explanation
Why C — $20
NAV = (Assets - Liabilities) / Shares = ($150M - $10M)/7M = $20. Choices B, C, and D are incorrect calculations.
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