The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 300,000 $ 30 B 400,000 35 C 500,000 10 D 700,000 15 The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $30,000. There are 4 million shares outstanding. What is the net asset value of the fund

The Net sales value of the fund is $9.62

Explanation:

Net asset is the net value of assets and liabilities. Net asset value of fund the the value of all the investment less any liability associated with those investment.

Stock  Shares     Price  Total

  A      300,000  $30    $9,000,000

  B      400,000  $35    $14,000,000

  C      500,000  $10    $5,000,000

  D      700,000  $15    $10,500,000

Total                              $38,500,000

Net Asset value = Total asset value - Total Liabilities = $38,500,000 - $30,000 = $38,470,000

Number of outstanding shares = 4,000,000

NAV = Net asset value / number of outstanding shares = $38,470,000 / 4,000,000 = 9.6175 = $9.62