Suppose You Own a Mutual Fund That Has 10,500,525 Shares

question 15

Multiple Choice

Suppose you own a mutual fund that has 10,500,525 shares outstanding. If its total assets are $37,500,020 and its liabilities are $12,375,375, find the net asset value of the fund.

• A) $3.20
• B) $2.39
• C) $3.71
• D) $3.05

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Definitions:

Daily Demand

The total requirement or desire for a product or service on a daily basis.

Computers

Electronic devices designed to accept data, perform prescribed mathematical and logical operations at high speed, and display the results.

Expected Value

The sum of all possible values each multiplied by its probability of occurrence.

Binomial Distribution

A probability distribution that models the number of successes in a fixed number of independent Bernoulli trials with the same probability of success.