Question

The total value is divided by the total number of
units to get the value of a single a given time is
called
1) Profit
2) NAV
3) Mutual funds
4) Rate of Interest​

Answer 1

Given :- The total value is divided by the total number of

units to get the value of a single a given time is

called

1) Profit

2) NAV

3) Mutual funds

4) Rate of Interest

Answer :- (2) NAV . { Net asset value .}

Explanation :- NAV represents the price at which a mutual fund may be bought by an investor or sold back to a fund house. A mutual fund’s NAV is an indicator of its market value. Therefore, NAV can be viewed to assess the current performance of a mutual fund.

Calculation :- We calculate the NAV of a mutual fund by dividing the total net assets by the total number of units issued. To get the total net assets of a fund, subtract any liabilities from the current value of the mutual fund’s assets and then divide the figure by the total number of units outstanding. The resulting figure is the NAV of the mutual fund.

So, The mathematical formula for NAV is :-

• (Assets - Debits) / (Number of outstanding units)

The NAV of a mutual fund is always calculated at the end of the market day. This is because the market value of securities changes on a daily basis. Hence, the NAV of a mutual fund also changes daily.