Question 8 • ****Spring 2026 Financial Math - MA2007 MQS21QXV
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?
Answer
A
Rauol will have a loss of $272.80.
B
Rauol will have a profit of $272.80.
C
Rauol will have a profit of $2,844.25.
D
There is not enough information to calculate profit or loss.
Explanation
Rauol receives 155 × $18.35 = $2,844.25 when redeeming the shares. Compared with the $3,117.05 originally invested, that is $3,117.05 − $2,844.25 = $272.80 less. So Rauol will have a loss of $272.80.
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