22. Net Asset Value

L1 25 Net Asset Value V2

Net Asset Value

NAV: Net Asset Value
AUM: Assets Under Management
NAV = (AUM - Expenses) / (number of shares)

Net Asset Value

Calculate the NAV of a fund given the following information: The fund holds 4000 shares of stock A at $5 per share; and 3000 shares of stock B at $4 per share. The Gross Expense Ratio of the fund is 0.1% (0.001) of the assets under management. Assume there are no other liabilities. There are 1000 shares of the fund.

SOLUTION: $31.97

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