Net asset value takes into account____________.

both realized and unrealized capital gains
only realized capital gains
only unrealized capital gains
neither realized nor unrealized capital gains.

The correct answer is: A. both realized and unrealized capital gains.

Net asset value (NAV) is the total market value of a fund’s assets minus its liabilities, divided by the number of shares outstanding. It is calculated at the end of each trading day and represents the per-share value of a fund’s investment.

NAV takes into account both realized and unrealized capital gains. Realized capital gains are the profits that a fund has made from selling assets. Unrealized capital gains are the profits that a fund would make if it sold all of its assets at their current market value.

For example, let’s say that a fund has $100 million in assets and $10 million in liabilities. The fund has $90 million in net assets. If the fund has $10 million in realized capital gains and $20 million in unrealized capital gains, the NAV would be $110 per share.

It is important to note that NAV is not the same as market price. Market price is the price at which a fund’s shares are actually trading. NAV is often lower than market price because it does not take into account the fees that a fund charges.

I hope this helps! Let me know if you have any other questions.