Question

a certain mutual fund has net assets of $1,359,600. one share of this fund has a net asset value of $11.33. how many shares make up the fund?
a. 833
b. 120,000
c. 1,359,600
d. 15,404,268

Explanation:

Step1: Recall the formula for number of shares

To find the number of shares, we use the formula: \(\text{Number of shares}=\frac{\text{Total net assets}}{\text{Net asset value per share}}\)

Step2: Substitute the given values

Given total net assets = \(\$1,359,600\) and net asset value per share = \(\$11.33\). So we calculate \(\frac{1359600}{11.33}\)

Step3: Perform the division

\(\frac{1359600}{11.33} = 120000\) (after performing the division: \(1359600\div11.33 = 120000\))

Answer:

b. 120,000