The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 310,000 $ 35 B 410,000 40 C 510,000 15 D 710,000 20 The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $35,000. There are 5 million shares outstanding. What is the net asset value of the fund? (Round your answer to 2 decimal places.)

The net asset value of the fund is $9.81.

Explanation:

Net Asset value is calculated by total net asset value of the portfolio divided by number of outstanding share.

Stock Shares Price Total Value

A 310,000 $35 $10,850,000

B 410,000 $40 $16,400,000

C 510,000 $15 $7,650,000

D 710,000 $20 $14,200,000

Total 1,940,000 $49,100,000

Net Assets = Total portfolio value - Liabilities

The only liability is the accrued management fee of $35,000.

Net Assets = $49,100,000 - $35,000 = $49,065,000

Net asset value = Net asset / total outstanding shares

Net asset value = $49,065,000 / 5,000,000 = $9.813 = $9.81