Suppose an open-end mutual fund holds the stocks of three corporations. Assume the fund incurs expenses...

 

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Suppose an open-end mutual fund holds the stocks of three corporations. Assume the fund incurs expenses of $10, while the stocks it holds generate $5 in income. Also assume that the mutual fund has 850 shares outstanding. Fill in the following table in order to calculate the net asset value (NAV) of the mutual fund. Stock (Company) Corporation A Corporation B Corporation C Total Stock Portfolio Value Less Management Expenses of Fund Plus Interest & Dividends Total Market Value of Fund Net Asset Value Shares (n) 400 200 200 Share Price ($ per share) $6 $7 $7 Value ($) ($10) $5 Suppose an open-end mutual fund holds the stocks of three corporations. Assume the fund incurs expenses of $10, while the stocks it holds generate $5 in income. Also assume that the mutual fund has 850 shares outstanding. Fill in the following table in order to calculate the net asset value (NAV) of the mutual fund. Stock (Company) Corporation A Corporation B Corporation C Total Stock Portfolio Value Less Management Expenses of Fund Plus Interest & Dividends Total Market Value of Fund Net Asset Value Shares (n) 400 200 200 Share Price ($ per share) $6 $7 $7 Value ($) ($10) $5

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To calculate the net asset value NAV of the mutual fund we need to use the following formula NAV Tot... View the full answer