The Net Asset Value of a Mutual Fund Has Decreased

question 12

Multiple Choice

The net asset value of a mutual fund has decreased from $2,700 on December 31 to $1,330 now. The percent decrease in value is about:

• A) 103 percent.
• B) 1.03 percent.
• C) 0.507 percent.
• D) 50.7 percent.
• E) 5.07 percent.

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Definitions:

Financing Activities

These are transactions and events that relate to how a company finances its operations, including issuing equity, obtaining loans, or paying dividends.

Investing Activities

Financial transactions related to the acquisition or sale of long-term assets and other investments not included in cash equivalents.

Operating Activities

Transactions and other events that affect the net income of a business, relating to its principal revenue-producing activities.

Accounting Equation

The fundamental equation of accounting, representing the relationship between assets, liabilities, and owner's equity (Assets = Liabilities + Equity).