If a Mutual Fund Has an NAV of $100 Million

question 388

Multiple Choice

If a mutual fund has an NAV of $100 million, and investors own $10,000,000 of fund's shares, the funds per share value will be:

• A) $100
• B) $1
• C) $10
• D) None of these

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Definitions:

Excise Tax

A tax imposed on specific goods, services, or transactions, often included in the price of the product, like alcohol, tobacco, and gasoline.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium outcome is not achievable due to market failure or interventions.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to changes in price, income, or other factors.

Demand

The desire to purchase goods and services backed by the ability and willingness to pay a price.