Which of the Following Would Increase the Net Asset Value

question 17

Multiple Choice

Which of the following would increase the net asset value of a mutual fund share,assuming all other things remain unchanged?

• A) an increase in the number of fund shares outstanding
• B) an increase in the fund's accounts payable
• C) a change in the fund's management
• D) an increase in the value of one of the fund's stocks
• E) a decrease in the fund's 12b-1 fee

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Definitions:

Total Assets

The sum of all resources owned by a company, valued in monetary terms.

Return on Assets

A profitability ratio that indicates how efficiently a company uses its assets to generate profit, calculated by dividing net income by total assets.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments, which are recorded in the investing section of the cash flow statement.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.