Question

A mutual fund has total assets of 2.4 million dollars and 300,000 shares. What is the net asset value of one share of the fund? a. $0.08 b. $0.80 c. $8.00 d. $80.00

Answer 1

I believe the answer is c. $8. 00

Answer 2

Net assest value of one share is $8 .

Option (c) is correct .

Explanation:

As given

A mutual fund has total assets of 2.4 million dollars and 300,000 shares.

As 1 million = 1000000

Total assest value = $2.4 × 1000000

Thus

`Net\ asset\ value\ of\ one\ share = (2.4* 1000000)/(300000)`

Put all the values in the above

`Net\ asset\ value\ of\ one\ share = (24* 1000000)/(300000* 10)`

`Net\ asset\ value\ of\ one\ share = (24)/(3)`

Net asset value of one share = $8 .

Therefore net assest value of one share is $8 .

Option (c) is correct .