What Is Known as the Net Asset Value (NAV)

question 1

Multiple Choice

What is known as the net asset value (NAV) ?

• A)The closing price of the securities that comprise a particular fund's portfolio plus the value of any uninvested cash that the fund manager maintains for the fund.
• B)A concept used in finance and economics,defined as a rational and unbiased estimate of the potential market price of a good,service,or asset.
• C)The value of an entity's assets plus the value of its liabilities at the end of the trading day.
• D)The difference between the replacement cost of a fixed asset and its book value appearing on the balance sheet.

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Definitions:

Proportional Share

An allocation method where resources, rewards, or responsibilities are distributed among parties based on a predefined ratio or proportion.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Illusion of Invulnerability

A cognitive bias that leads individuals or groups to underestimate risks, believing themselves immune to negative outcomes.

Self-Censorship

Self-censorship occurs when individuals withhold their opinions, expressions, or information out of fear of social or official reprisal, judgment, or rejection.