Net Asset Value Is Determined by Taking the Total Market

question 93

True/False

Net asset value is determined by taking the total market value of all the securities held by the mutual fund,subtracting out any liabilities,and dividing the result by the number of shares outstanding.

---

Definitions:

Anticipated Markup

The expected percentage added to the cost of goods to calculate the selling price, aiming for profit.

Elastic Demand

A situation where demand for a product or service significantly changes in response to changes in price.

Inelastic Demand

A situation where the demand for a product or service does not significantly change in response to price changes, indicating consumers' strong need or preference for the product.

Sensitive to Price

Sensitive to price describes a situation where demand for a product is highly affected by changes in its price.