1. Assume the following information on a mutual fund, assets: $3,000,000; liabilities: $500,000; no. of shares outstanding: 1,500,000. Compute the fund’s net asset value. 2. Explain why index funds...

1. Assume the following information on a mutual fund, assets: $3,000,000; liabilities: $500,000; no. of shares outstanding: 1,500,000. Compute the fund’s net asset value.

2. Explain why index funds have lower costs than traditional mutual funds.