The Net Asset Value of a Mutual Fund Is Found

question 21

Multiple Choice

The net asset value of a mutual fund is found by

• A)subtracting the daily market value of the fund's asset portfolio from the previous days' value.
• B)dividing the cumulative value of all asset positions held by the fund by the total number of asset shares held by the fund.
• C)computing the daily market value of the fund's total asset portfolio and then dividing this amount by the number of mutual fund shares outstanding.
• D)comparing the daily market value of the fund's total asset portfolio with that of its peers.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity produced, representing the cost per unit of output.

Contestable Market

A market with free entry and exit, where a company's prices and outputs are constrained by the threat of competition from potential entrants.

Economic Profit

The offset between total financial inflow and all encompassing outgoings, covering both specified and unspecified expenses.

Entry And Exit

Refers to the capability of businesses to freely enter into or exit from markets based on regulatory, economic, and market conditions, impacting competition and market dynamics.