Question

The value of the mutual fund's portfolio minus the mutual fund's liabilities divided by the number of shares outstanding is called the________.

Answer 1

Net Asset value (NAV)

Step-by-step explanation:

Net Asset value (NAV) represent per share market value of the fund.It is calculated using the below formula

Net Asset value of fund=Value of mutual fund's portfolio-Mutual fund liabilities/Number of share outstanding.

Mutual fund portfolio normally includes all the cash and securities of a fund.

NAV is normally computed at the end of the end of each trading day based on the closing market prices of the fund portfolio.