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Question 3.7: If a mutual fund has a portfolio with a market value of $1 m...

If a mutual fund has a portfolio with a market value of $1 million and liabilities of $0.2 million, what is the net asset value if the fund has 0.5 million shares?

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Net asset value = ($1 − 0.2) ÷ 0.5 = $1.60.

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