Consider a Mutual Fund with 100 Shareholders Who Each Invested

question 79

Multiple Choice

Consider a mutual fund with 100 shareholders who each invested $10 for a total of $1,000.If the assets of the mutual fund are worth $900, what is the net asset value for each one of the mutual fund shares?

• A)$0.9.
• B)$9.
• C)$90.
• D)$10.
• E)$0.10.

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Definitions:

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting its true value under normal market conditions.

Equipment

Equipment consists of the tools, machinery, and other durable assets used by a business to carry out its operations.

Cash

Money in the form of currency, including coins and banknotes, which is used as a medium of exchange and legal tender.

Equally

In a manner that showcases uniformity or parity in distribution, value, or measure among all parties or elements involved.