1. A mutual fund has $450 million in assets and liabilities of $10 million.
   1. If the fund has 44 million shares outstanding, what is its NAV?
   2. If an investor redeems 1,000,000 shares, what happens to the value of the fund's portfolio, to the number of shares outstanding, and to its NAV?

Answer rating: 100% (QA)

To calculate the Net Asset Value NAV of the mutual fund we can use the formula NAV Total Assets Tota... View the full answer