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 ____?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 5FPE

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Question

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

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