A Certain Mutual Fund Containing Both Corporate Stocks and Bonds

question 133

Multiple Choice

A certain mutual fund containing both corporate stocks and bonds has a total value of $2,500,000. The fund also has $500,000 in liabilities and 50,000 shares. What is the net asset value per share for this mutual fund?

• A) $60
• B) $2,000,000
• C) $40
• D) $3,000,000
• E) $100

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Definitions:

Representativeness Bias

A cognitive bias where individuals inaccurately judge the likelihood of an event by comparing it to an existing prototype in their minds.

Ideation Step

The phase in a creative or problem-solving process where ideas are generated.

Design Thinking

A problem-solving approach characterized by empathy with users, a discipline of prototyping, and a tolerance for failure, used primarily within the context of product design and business innovation.

Visualizing

The process of forming mental images or concepts to understand or analyze information.