Examlex

Solved

The Net Asset Value (NAV)per Share of a Mutual Fund

question 69

True/False

The net asset value (NAV)per share of a mutual fund is determined by the market value of securities owned minus liabilities divided by the number of mutual fund units outstanding.


Definitions:

Cost-output Elasticity

A measure of the responsiveness of the cost of production to a change in the level of output, indicating how costs change as production scales.

Economies of Scale

Refers to the cost advantage that arises with increased output of a product, where fixed costs are spread out over more units of output.

Economies of Scope

Cost advantages that enterprises obtain due to a broader scope of operations, often through producing a variety of products rather than specializing in just one.

Marginal Products

The extra output obtained by utilizing an additional unit of a specific input while keeping all other inputs unchanged.

Related Questions