Mutual Funds

Phillipe buys 50 shares of Green Energy and 120 shares of TJH Small-Cap. What is Phillipe's total investment?

$3,186.50

Nezzie 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?

$33.66

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.

NOT Loss of $0.05 per share

Elly buys 75 shares of stock in a mutual fund for a total investment of $450. She sells 50 shares of her stock for total proceeds of $400. Determine if Elly made a profit or loss, and how much per share.

NOT Loss of $0.67 per share

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.

$10,580

What were Nyromi's proceeds?

$4,617.50

Tracy buys 150 shares of Upton Group and 100 shares of WHI Health. What is Tracy's total investment?

$4,940.00

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?

NOT 0.08

Rochelle 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?

NOT $12.50

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.

NOT $9,576

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?

NOT The fund is a no-load fund.

Chyra redeemed 175 shares of stock she owned in the fund shown below. What were Chyra's proceeds?

NOT $77

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?

Salazar will have a profit of $441.

Why would a mutual fund, a collection of stocks, bonds, and other securities, have less risk than investing in stocks alone?

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.

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.

T

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?

The offer price of the fund was $0.15 more than the net asset value when purchased.

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

When purchasing load mutual funds, you are charged a fee, or commission, which is added to the fund's net asset value. The total of the net asset value and the commission, called the offer price, is the price you actually pay for each share of the fund.

You are a financial advisor with a client who purchased 100 shares of stock in a fund with a net asset value of $21.30 and an offer price of $21.45. Your client wants to make $20 per share on the stock when it is sold. The client calls you to find out why you have not sold the shares today, because they saw the stock listed with a net asset value of $41.30 and an offer price of $41.45. Explain to your client why you have not sold the shares.

You paid the offer price of $21.45 per share for your stock, and you can sell it for its net asset value of $41.30 per share. That is a profit of only $19.85 per share, which is not the $20 per share you want to get.

Which of the following expressions is equal to the total investment of a no-load mutual fund?

net asset value x number of shares