Mutual Funds Answers

Use the information in the table below to answer the following question.Name of FundNAVOffer PriceUpton Group$18.47$18.96Green Energy$17.29$18.01TJH Small-Cap$18.43$19.05WHI Health$20.96NLPhillipe buys 50 shares of Green Energy and 120 shares of TJH Small-Cap. What is Phillipe’s total investment?a.$3,076.10b.$3,112.10c.$3,150.50d.$3,186.50

Explain why the offer price is used to calculate the investment in a load mutual fund instead of the net asset value.

Which of the following expressions is equal to the total investment of a no-load mutual fund?a.net assets ÷ number of sharesb.net asset value ÷ number of sharesc.net asset value x number of sharesd.offer price x number of shares

Nezzie invests in 300 shares of stock in the fund shown below.Name of FundNAVOffer PriceLKIT Mid-Cap$16.58$16.99Nezzie plans to sell all of her shares when she can profit $5,000. What must the net asset value be in order for Nezzie to sell?a.$16.67b.$33.25c.$33.57d.$33.66

Nyromi redeemed 250 shares of stock she owned in the fund shown below.Name of FundNAVOffer PriceUpton Group$18.47$18.96What were Nyromi’s proceeds?a.$4,617.50b.$4,685.00c.$4,470.50d.$4,740.00

The net asset value of stock in a mutual fund had increased by $20 per share when an investor decided to redeem them. The investor had purchased 100 shares of the stock for $2,316 and redeemed them for $4,301. What can you conclude about the fund? a.The fund is a no-load fund.b.The offer price of the fund was $0.15 less than the net asset value when purchased.c.The offer price of the fund was $0.15 more than the net asset value when purchased.d.The offer price of the fund was $0.15 more than the net asset value when sold.

An investor buys 400 shares of stock in a fund when the net asset value is $23.79 and the offer price is $23.89. The investor sells these shares when the net asset value is $50.34 and the offer price is $50.46. Determine the amount of profit the investor earns.a.$10,580b.$10,620c.$10,628d.$20,136

Salazar made an investment in 140 shares of stock in a no-load fund for $2,993.20. After one year the stock had a net asset value of $24.53 per share. If Salazar redeems all 140 shares, which of the following is a correct statement?a.Salazar will have a loss of $441.b.Salazar will have a profit of $441.c.Salazar will have a profit of $3,434.20.d.There is not enough information to calculate profit or loss.

If a mutual fund has net assets of $294,000 and 16,800 shares, then each share has a net asset value of $17.50.