15. The bid-ask spread exists because of _______________.

A. market inefficiencies

B. discontinuities in the markets

C. the need for dealers to cover expenses and make a profit

D. lack of trading in thin markets

16. Assume that you have just purchased some shares in an investment company reporting $660 million in assets, $30 million in liabilities, and 30 million shares outstanding. What is the net asset value (NAV) of these shares?

A. $23

B. $21

C. $22

D. $1