A Mutual Fund Had Year-End Assets of $250,000,000 and Liabilities

question 10

Multiple Choice

A mutual fund had year-end assets of $250,000,000 and liabilities of $4,000,000.There were 3,750,000 shares in the fund at year end.What was the mutual fund's net asset value?

• A)$92.53
• B)$67.39
• C)$63.24
• D)$65.60

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Definitions:

Fixed

Pertaining to assets, costs, or charges that do not vary with the level of production or sales in the short term.

Cost Behavior Analysis

The study of how specific costs change in relation to changes in an organization's activity level.

Business Activity

Any actions undertaken by a company as part of its operations, including production, sales, marketing, and administration.

Unit Costs

Unit Costs refer to the total expenditure incurred to produce, store, and sell one unit of a product, including all variable and fixed costs.