has a portfolio that is worth $200 million. The fund has $12 million liabilities and 4 million shares outstanding. A) What is the NAV of the fund

Net asset value = $47 million

Explanation:

Net asset value is usually used with regards to mutual funds, and gives investor an idea if fund is undervalued or overvalued. It represents the market value of funds.

To calculate Net asset value use the following formula.

Net asset value = (value of portfolio - liabilities) / outstanding shares

Value of portfolio = $200 million

Liabilities = $12 million

Outstanding shares = 4 million

Therefore

Net asset value = (200 million - 12 million) / 4 million

Net asset value = $47 million