Consider a mutual fund that manages a portfolio of securities worth 120 million. Suppose the fund owes 4 million to its investment advisers and another $1 million for rent, wages due, and miscellaneous expenses. The fund has outstanding 5 million shares.

Here's the solution for Question 4. Question 4: Consider a mutual fund that manages a portfolio of securities worth 120 million. Suppose the fund owes 4 million to its investment advisers and another 1 million for rent, wages due, and miscellaneous expenses. The fund has outstanding 5 million shares. Step 1: Calculate the total assets of the mutual fund. The total assets are the value of the securities managed by the fund. Total Assets = \120,000,000 Step 2: Calculate the total liabilities of the mutual fund. The total liabilities are the sum of all amounts the fund owes. Total Liabilities = \4,000,000 (advisers) + \1,000,000 (rent, wages, etc.) = \5,000,000 Step 3: Calculate the Net Asset Value (NAV) of the fund. NAV is calculated by subtracting total liabilities from total assets. NAV = Total Assets - Total Liabilities = \120,000,000 - \5,000,000 = \115,000,000 Step 4: Calculate the Net Asset Value (NAV) per share. NAV per share is the NAV divided by the number of outstanding shares. NAV per share = NAVNumber of Outstanding Shares = (\115,000,000)/(5,000,000 shares) = \23 per share The Net Asset Value (NAV) per share is \23$. That's 4 down. 1 left today — send the next one.