Amutual 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.

Answer B

Cost per share = $5

total number of shares = 450

total cost of shares = cost per share * total number of shares

total cost of shares = $ 5 * 450= $ 2250

profit made on selling them =  $2,205

difference between actual cost of shares and profit made = 2250 - 2205

difference between actual cost of shares and profit made = $ 45

So, total number of shares = 450

commission per share = 45/450 =  $0.10 commission

The fund had a $0.10 per share commission when purchased.

part a: 1.08

part b: 27.59

kaahe btau