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Rochelle invests in 500 shares of stock in the fund shown below.

\begin{tabular}{|l|c|c|}
\hline
Name of Fund & NAV & Offer Price \\
\hline
HAT Mid-Cap & [tex]$\$[/tex] 18.94[tex]$ & $[/tex]\[tex]$ 19.14$[/tex] \\
\hline
\end{tabular}

Rochelle plans to sell all of her shares when she can profit [tex]$\$[/tex] 6,250[tex]$. What must the net asset value be in order for Rochelle to sell?

A. $[/tex]\[tex]$ 12.50$[/tex]
B. [tex]$\$[/tex] 31.44[tex]$
C. $[/tex]\[tex]$ 31.64$[/tex]
D. [tex]$\$[/tex] 100.00$

Sagot :

GinnyAnsweridn
To determine the net asset value (NAV) at which Rochelle should sell her shares to achieve her desired profit of \[tex]$6,250, we can take the following steps: 1. Identify the initial NAV and the number of shares Rochelle has: - The initial NAV (Net Asset Value) is \$[/tex]18.94.
- Rochelle has invested in 500 shares.

2. Calculate the total initial investment:
- The total initial investment = Initial NAV × Number of shares.
- Total initial investment = \[tex]$18.94 × 500 = \$[/tex]9,470.

3. Determine the desired sale value to achieve the targeted profit:
- Desired profit = \[tex]$6,250. - Therefore, the total sale value should be the initial investment plus the desired profit. - Total sale value = Initial investment + Desired profit. - Total sale value = \$[/tex]9,470 + \[tex]$6,250 = \$[/tex]15,720.

4. Calculate the required NAV for Rochelle to reach the total sale value:
- Since Rochelle wants to sell all 500 shares, the required NAV can be found by dividing the total sale value by the number of shares.
- Required NAV = Total sale value / Number of shares.
- Required NAV = \[tex]$15,720 / 500 = \$[/tex]31.44.

Therefore, the net asset value must be \[tex]$31.44 in order for Rochelle to sell her shares and achieve her targeted profit of \$[/tex]6,250. The correct answer is:

b. \$31.44
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