Question

Mark buys 250 shares of stock in a fund with a net asset value of $25.17 and an offer price of $25.30. mark wants to sell all of his shares when he can profit $1,000. if mark sells his shares today, he would have proceeds of $7,300. determine if mark should sell his shares today and why.

a. mark should not sell his shares because he would have a loss rather than a profit.
b. mark should not sell his shares because he would not have as much profit as he’d like.
c. mark should sell his shares because he will make the profit he wants to make.
d. there is not enough information given to know if mark should sell his shares or not.

Answer 1

As per the values, c. Mark should sell his shares because he will make the profit he wants to make.

Step-by-step explanation:

To determine if Mark should sell his shares today, we need to calculate his profit.

Mark bought 250 shares of stock at a net asset value of $25.17 per share, which means he invested a total of $6,292.50.

The offer price is $25.30 per share, so if he sells all his shares, he would receive $6,325.

Since Mark wants to make a profit of $1,000, we can calculate the difference between the proceeds from selling his shares and his initial investment:

= $7,300 - $6,292.50

= $1,007.50.

Therefore, Mark should sell his shares today because he will make the profit he wants to make. The correct answer is option c.