Multiple choice

A fund's NAV is affected by

  1. purchase and sale of investment securities

  2. valuation of all investment securities held

  3. accrual of income or expense

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

NAV changes daily due to all three factors: buying/selling securities (changes portfolio), revaluation of holdings (market price movements), and accrual of income/expenses (interest, dividends, management fees). Each affects the net asset value. Therefore, all of the above impact NAV.

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