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 $0.10 per share commission when sold.

Question

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 $0.10 per share commission when sold.

AnimeGhoul8863 · Answer

WELCOME TO QUESTIONCOVE SHANNAEP34!!

Vocaloid · Answer

first step: calculate the profit made per share by dividing total profit/number of shares

then, compare that amount to the 5 dollar increase to determine how much the commission is and whether the commission occurred when sold or when purchased