Question

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.

Answer 1

The answer is: $9,340

Step-by-step explanation:

The investor's profit is calculating by determining the difference between the net asset value (when the investor sold the asset) minus the offer price (when the investor bought the asset).

In this case the investor's profit for one share is: $43.19 - $19.84 = $23,35

Then we just multiply $23.35 times 400 shares = $9,340