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?
rauol will have a loss of $272.80.
rauol will have a profit of $272.80.
rauol will have a profit of $2,844.25.
there is not enough information to calculate profit or loss.
155 shares of stock for 3,117.05. load fund
net asset value of stock is 18.35 per share.
The correct statement would be D. THERE IS NOT ENOUGH INFORMATION TO CALCULATE PROFIT OR LOSS
Load fund means that aside from the actual value of the stocks, investors also pay commission or sales charge to their brokers. The amount 3,117.05 is the total amount paid on the shares of stock. Thus, it is the combination of the actual cost of the shares and the commission paid.
Rauol will have a loss of $272.80.
35x 3= 105
35+35= 70 70 + 35= 105