The NAV of an investment company equals the ________ of all its assets ________ the number of fund shares outstanding.
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A. B. C. D.B
Net Asset Value (NAV) = (Total market value of all assets/Number of outstanding fund shares)
The correct answer is C. the per-share value; divided by.
The Net Asset Value (NAV) of an investment company is a key measure used to determine the value of each share in the fund. It represents the total value of the assets held by the fund, divided by the number of shares outstanding.
The NAV is calculated by taking the total market value of all the assets held by the investment company and dividing it by the number of shares outstanding. The market value of the assets represents the current fair value of the investments held by the fund, which can include stocks, bonds, cash, and other securities.
By dividing the total market value of the assets by the number of shares outstanding, you arrive at the per-share value, which is essentially the value of each individual share in the fund. This per-share value represents the NAV of the investment company.
Therefore, the correct answer is C. the per-share value; divided by.