Net Asset Value Is Calculated by the Total Value of All

question 37

Multiple Choice

Net asset value is calculated by the total value of all the assets the ________.

• A)fund holds
• B)fund holds for the historical average for one year,divided by the number of mutual fund shares outstanding
• C)fund holds,divided by the number of mutual fund shareholders
• D)fund holds,divided by the number of mutual fund shares outstanding

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Definitions:

Arbitrage Pricing Model

A theory for asset pricing that takes into account multiple risk factors and the return of an asset, assuming no arbitrage opportunities.

Characteristic Line

In finance, this is a line generated in a statistical plot to describe how the returns of a security relate to the returns of the overall market, used in the Capital Asset Pricing Model (CAPM).

Market Risk

The risk of losses in investments due to factors that affect the entire market, such as economic recessions or political instability.

Scatter Diagram

A graphical representation displaying the relationship or correlation between two numerical variables, with data points plotted on a horizontal and vertical axis.