FINA 200 (JMSB exams) Lesson 9- Investing in Mutual Funds (Financial
Planning) Concordia University
Question 1.
The market value of securities and the current liabilities for a mutual fund are $483 450
000 and $18 070 900, respectively. What is the net asset value per share (NAVPS) for this
mutual fund if there are 40 million shares outstanding?
The net asset value per share (NAVPS) for this mutual fund is $11.6345, calculated as:
NAVPS = Net Asset Value (NAV) ÷ Number of Shares Outstanding
NAVPS = ($483 450 000 – $18 070 900) ÷ 40 000 000
NAVPS = $11.63
Question 2.
Calculate the NAVPS for a mutual fund with the following values:
Market value of securities in the portfolio $1.2 billion
Liabilities of the fund $37 million
Shares outstanding 60 million
The net asset value per share (NAVPS) for this mutual fund is $19.3833, calculated as:
NAVPS = Net Asset Value (NAV) ÷ Number of Shares Outstanding
NAVPS = ($1.2 billion – $37 million) ÷ 60 million
NAVPS = $19.38
Question 3.
Hope invested $9000 in a mutual fund at a time when the price per share was $30. The fundhas
a load fee of $300. How many shares did she purchase?
Hope purchased 290 shares after the load fee is paid to the broker:
Investment $9,000
Less load fee $300
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