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...

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 ________?

Jun 11, 2022

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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...

1. Computing the net asset value of a mutual fund investment

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