The Net Asset Value (NAV)per Share of a Mutual Fund

question 69

True/False

The net asset value (NAV)per share of a mutual fund is determined by the market value of securities owned minus liabilities divided by the number of mutual fund units outstanding.

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Definitions:

Money Concept

A financial principle that emphasizes the role of currency in transactions and as a measure of value in the economic system.

Net Present Value Method

A financial analysis technique that discounts all cash flows associated with a project to their present value to help assess the project's profitability.

Capital Investment Analysis

Involves evaluating the potential profitability and risks of investments made in long-term assets to determine their feasibility and impact on a company’s future.

Average Rate of Return

It calculates the return, generated over a period of time, of an investment compared to the initial investment.