NAV Is Equal to the

question 68

Multiple Choice

NAV is equal to the

• A) current market value of a mutual fund's portfolio minus the mutual fund's liabilities divided by the number of outstanding shares.
• B) current market value of a share of common stock multiplied by the number of outstanding shares divided by the company's sales.
• C) current market value of a company divided by the number of outstanding shares offered by that company.
• D) current market value of a mutual fund's portfolio minus the mutual fund's administrative costs divided by the number of outstanding shares.
• E) previous market value of a mutual fund's portfolio adding the revenue generated by the fund during a 12-month period.

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Definitions:

Goods

Physical items that satisfy human wants or needs and can be transferred or sold.

Price-Consumption Curve

Curve tracing the utility-maximizing combinations of two goods as the price of one changes.

Utility

A measure of satisfaction or happiness that a consumer derives from the consumption of goods and services.

Engel Curve

Curve relating the quantity of a good consumed to income.