Question

all of the following actions would cause the nav per share of the mutual fund to increase except a) the liabilities of the fund decline. b) the fund receives dividends. c) a large number of investors making deposits in the fund. d) the fund receives interest.

Answer 1

c) a large number of investors making deposits in the fund.

Step-by-step explanation:

When new investors make deposits into the mutual fund, it increases the total assets of the fund without increasing the liabilities. This leads to a higher NAV per share because the fund's net assets increase while the number of shares outstanding remains the same.