BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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4, 826.20 profit
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4, 895 profit
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482.62 loss
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482.62 Profit
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Detailed explanation-1: -Net asset value (NAV) represents a fund’s per-share intrinsic value. It is similar in some ways to the book value of a company. NAV is calculated by dividing the total value of all the cash and securities in a fund’s portfolio, minus any liabilities, by the number of outstanding shares.
Detailed explanation-2: -Net asset value per share (NAVPS) is calculated by dividing the net asset value by the number of shares outstanding.
Detailed explanation-3: -Suppose you redeem 500 units of a scheme 4 months after your date of purchase. Let us assume that the NAV is Rs 100. The exit load will be = 1% X 500 (number of units) X 100 (NAV) = Rs 500. This amount will be deducted from the redemption proceeds which gets credited to your bank account.
Detailed explanation-4: -NAV Formula NAV = (Assets-Liabilities) / Total number of outstanding shares. NAV is often close to or equal to the book value of a business.