Financial Risk Manager Part 1

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Explanation:

Calculation of Net Asset Value (NAV)

Step 1: Calculate Total Assets

Equities: $1,100,000,000
Bonds: $350,000,000
Cash: $35,000,000
Total Assets = $1,100,000,000 + $350,000,000 + $35,000,000 = $1,485,000,000

Step 2: Calculate Total Liabilities

Management fees payable: $1,850,000

Step 3: Calculate Net Assets

Net Assets = Total Assets - Total Liabilities
Net Assets = $1,485,000,000 - $1,850,000 = $1,483,150,000

Step 4: Calculate NAV per Share

Shares outstanding: 39,635,000
NAV = Net Assets ÷ Shares Outstanding
NAV = $1,483,150,000 ÷ 39,635,000 = $37.47

Verification:

$1,483,150,000 ÷ 39,635,000 = $37.47 (rounded to two decimal places)

Therefore, the correct NAV is $37.47, which corresponds to Option B.

Explanation:

Calculation of Net Asset Value (NAV)

Step 1: Calculate Total Assets

Equities: $1,100,000,000
Bonds: $350,000,000
Cash: $35,000,000
Total Assets = $1,100,000,000 + $350,000,000 + $35,000,000 = $1,485,000,000

Step 2: Calculate Total Liabilities

Management fees payable: $1,850,000

Step 3: Calculate Net Assets

Net Assets = Total Assets - Total Liabilities
Net Assets = $1,485,000,000 - $1,850,000 = $1,483,150,000

Step 4: Calculate NAV per Share

Shares outstanding: 39,635,000
NAV = Net Assets ÷ Shares Outstanding
NAV = $1,483,150,000 ÷ 39,635,000 = $37.47

Verification:

$1,483,150,000 ÷ 39,635,000 = $37.47 (rounded to two decimal places)

Therefore, the correct NAV is $37.47, which corresponds to Option B.

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Consider an open-end mutual fund that owns `$1.1` billion in equities, `$350` million in bonds, and `$35` million in cash. They owe `$1.85` million in management fees payable at this point in the quarter and they have 39.635 million shares outstanding. What is this fund's NAV?

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Last updated: February 19, 2026 at 14:03

$27.75

6.3%

$37.47

31.3%

$37.51

6.3%

$37.42

56.3%

Financial Risk Manager Part 1

Get started today

Calculation of Net Asset Value (NAV)

Calculation of Net Asset Value (NAV)

Comments (0)

Get started today

Consider an open-end mutual fund that owns $1.1 billion in equities, $350 million in bonds, and $35 million in cash. They owe $1.85 million in management fees payable at this point in the quarter and they have 39.635 million shares outstanding. What is this fund's NAV?

Comments (0)

Consider an open-end mutual fund that owns `$1.1` billion in equities, `$350` million in bonds, and `$35` million in cash. They owe `$1.85` million in management fees payable at this point in the quarter and they have 39.635 million shares outstanding. What is this fund's NAV?