A mutual fund's net asset value (NAV)reflects
A)the market value of all its holdings.
B)the amount distributed to shareholders each year.
C)its revenues minus its expenses.
D)its per-share value in a bankruptcy liquidation.

Question

Quizplus · Accepted Answer

The net asset value (NAV) of a mutual fund reflects the market value of all its holdings, meaning the total value of all the securities and assets it owns. This is divided by the number of outstanding shares to determine the NAV per share. The NAV is important for investors as it helps to determine the value of their investment and to monitor the performance of the fund.

A Mutual Fund's Net Asset Value (NAV)reflects