Mutual Funds Answers

A married couple buys 280 shares of stock for a total investment of $8,722. They decide to sell all of their shares in the fund at the listing value shown below.Name of FundNAVOffer PriceCEH Mid-Cap$31.05$31.20Determine if the couple makes a profit or loss, and how much per share.a.loss of $0.05 per shareb.loss of $0.10 per sharec.profit of $0.05 per shared.profit of $0.10 per share

Rochelle invests in 500 shares of stock in the fund shown below.Name of FundNAVOffer PriceHAT Mid-Cap$18.94$19.14Rochelle plans to sell all of her shares when she can profit $6,250. What must the net asset value be in order for Rochelle to sell?a.$12.50b.$31.44c.$31.64d.$100.00

Mark buys 250 shares of stock in a fund with a net asset value of $25.17 and an offer price of $25.30. Mark wants to sell all of his shares when he can profit $1,000. If Mark sells his shares today, he would have proceeds of $7,300. Determine if Mark should sell his shares today and why.a.Mark should not sell his shares because he would have a loss rather than a profit.b.Mark should not sell his shares because he would not have as much profit as he’d like.c.Mark should sell his shares because he will make the profit he wants to make.d.There is not enough information given to know if Mark should sell his shares or not.

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 sells 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.$9,576b.$9,488c.$9,428d.$9,340

A mutual fund has total assets of 2.4 million dollars and 300,000 shares. What is the net asset value of one share of the fund?a.$0.08b.$0.80c.$8.00d.$80.00

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? a. The fund is a no-load fund. b. The fund had a $0.10 per share commission when purchased. c. The fund had a $1.00 per share commission when purchased. d. The fund had a $10.00 per share commission when purchased. Please select the best answer from the choices provided

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$20.96NLTrevor buys 80 shares of Upton Group and 70 shares of TJH Small-Cap. What is Trevor’s total investment?a.$2,687.90b.$2,768.00c.$2,850.30d.$2,957.60

Rauol made an investment in 155 shares of stock in a load fund for $3,117.05. After one year the stock had a net asset value of $18.35 per share. If Rauol redeems all 155 shares, which of the following is a correct statement?a.Rauol will have a loss of $272.80.b.Rauol will have a profit of $272.80.c.Rauol will have a profit of $2,844.25.d.There is not enough information to calculate profit or loss.

Why would a mutual fund, a collection of stocks, bonds, and other securities, have less risk than investing in stocks alone?a.Stocks are higher risk than most other securities in a mutual fund, but when averaged with the risk of the other securities, mutual fund risk is not as high as stock risk. b.Mutual funds are controlled primarily by their investors, and those investors would do anything they could to keep their mutual fund from decreasing in value. c.Because mutual funds eliminate the middle man, there is far less room for error and higher chance for greater profit. d.Mutual funds, by nature, are a mutual agreement between company and investor, and failure to comply on either side presents reprecussions, the fear of which lowers the risk of the investment.

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$20.96NLFor which of the funds shown would you pay the most commission on the purchase of 100 shares?a.Green Energyb.TJH Small-Capc.Upton Groupd.WHI Health