An investor buys 400 shares of stock in a fund when the net asset value is $19.62 and the offer price is $19.84. The investor se

Question

3 years ago

11

An investor buys 400 shares of stock in a fund when the net asset value is $19.62 and the offer price is $19.84. The investor se

lls these shares when the net asset value is $43.19 and the offer price is $43.56. Determine the amount of profit the investor earns. a. $9,576 b. $9,488 c. $9,428 d. $9,340

Mathematics

2 answers:

Oxana [17] · Answer 1 · 2022-08-28T02:40:44+03:00

Oxana [17]3 years ago

8 0

Your Answer would be D. $9,340

Vinvika [58] · Answer 2 · 2022-08-28T04:54:53+03:00

Answer:

Option d. Investor earns profit of $9,340.

Step-by-step explanation:

An investor buys stock in a fund = 400 shares

Net Asset Value (NAV) = $19.62

Offer Price = $19.84

Total cost price of shares = 19.84 × 400 = $7936.00

He sells these shares when

Net Asset Value (NAV) = $43.19

Offer Price = $43.56

Total selling price of shares = 400 × 43.19 = $17,276.00

Total profit = 17,276 -7,936 = $9,340.00

Investor earns profit of $9,340.