Question

A mutual fund’s net asset value increases by $5 per share. An investor who owns 450 shares of this fund sells them all for a profit of $2,205. What can you conclude about the fund?

Answer 1

The total amount of profit that he was able to gain out of his 450 shares is 2,205. In the problem, it states that for ever share he earns $5 dollars each.in order to derive the total amount of profit he got from his shares, we multiply 450 shares and $5.
so, 450*5 is equals to $2,205.