The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $35,000. There are 4 million shares outstanding. What is the net asset value of the fund

The net asset value of the fund is $12.24 per unit.

Explanation:

Net asset value is the amount of total asset minus total liability associated with those asset. In this question total value of the portfolio is the value of asset and management fee is liability.

Stock Shares Price Value

A 370,000 $35 $12,950,000

B 470,000 $40 $18,800,000

C 570,000 $10 $5,700,000

D 770,000 $15 $11,550,000

Total $49,000,000

Total Asset Value = $49,000,000

Total Liability = $35,000

Net Asset value = $49,000,000 - $35,000 = $48,965,000

Net Asset value per share = $48,965,000 / 4,000,000 = $12.24 per share