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?

The increase in value is 450 × $5 = $2,250. Since the investor’s profit was $2,205, the difference is $45, or $45 ÷ 450 = $0.10 per share. This indicates the fund had a $0.10 per share commission when purchased.

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