SIE Exam Question 572: Answer and Explanation

Question: 572

How is the net asset value (NAV) of a mutual fund calculated?

• A. NAV = (Total value of investment + Liabilities) ÷ Shares outstanding
• B. NAV = (Total value of investment ÷ Shares outstanding) - Liabilities
• C. NAV = (Total value of investment - Liabilities) ÷ Shares outstanding
• D. NAV = Total value of investment ÷ Shares outstanding

Correct Answer: C

Explanation:

NAV = (Total value of investment - Liabilities) ÷ Shares outstanding