Question

The All-Star Basic Value Fund's portfolio is valued at $386.2 million. The fund has liabilities of $8.6 million, and the investment company sponsoring the fund has issued 18,600,000 shares. What is the fund's net asset value (NAV)?

Answer 1

Answer:

Net Asset Value of the fund = $377.6 million

Explanation:

Net Asset Value 9NAV) is the value per share in a portfolio.

Provided information,

All Star Basic Value Fund value = $386.2 million

Liabilities of fund = $8.6 million

Net Asset Value = $386.2 - $8.6 = $377.6 million

Net Asset Value per share = $\frac{377,600,000}{18,600,000} = 20.30$

Therefore, Net Asset Value of the fund = $377.6 million

And NAV per share = $20.30