Solve the problems listed below. Show your solution and box the final answer. (bond or yellow paper) 1. A fund is set up to charge a load. Its net asset value is P16.50 and its offer price is P17.30. A. How much is the commission of the load? B. What percentage of the offer price does the commission represent? C. What percentage of the net asset value does the commission represent? D. Assume the fund increased in value by .30 the first month after you purchased 100 shares. What is the total gain or loss? Compare the total current value with the total purchase amount. E. By what percentage would the net asset value of the shares have to increase for you to break even? 2. Under peso-cost averaging, an investor will purchase P6,000 worth of stock each year for three years. The stock price is P40 in year 1, P30 in year 2 and P48 in year 3. A. What is the share purchased in every year? B. Compute the average price per share. C. Compute the average cost per share. 3. Under peso-cost averaging, an investor will purchase P26,500 worth of stock each year for 5 years. The stock price is P40 in year 1, and is 5% increasing for the next 3 years except for the 5th year that the stock price decreases by 10%. A. What is the share purchased in every year? B. Compute the average price per share. C. Compute the average cost per share
Solve the problems listed below. Show your solution and box the final answer. (bond or yellow paper)
1. A fund is set up to charge a load. Its net asset value is P16.50 and its offer price is P17.30.
A. How much is the commission of the load?
B. What percentage of the offer price does the commission represent?
C. What percentage of the net asset value does the commission represent?
D. Assume the fund increased in value by .30 the first month after you purchased 100 shares. What is the total gain or loss? Compare the total current value with the total purchase amount.
E. By what percentage would the net asset value of the shares have to increase for you to break even?
2. Under peso-cost averaging, an investor will purchase P6,000 worth of stock each year for three years. The stock price is P40 in year 1, P30 in year 2 and P48 in year 3.
A. What is the share purchased in every year?
B. Compute the average price per share.
C. Compute the average cost per share.
3. Under peso-cost averaging, an investor will purchase P26,500 worth of stock each year for 5 years. The stock price is P40 in year 1, and is 5% increasing for the next 3 years except for the 5th year that the stock price decreases by 10%.
A. What is the share purchased in every year?
B. Compute the average price per share.
C. Compute the average cost per share
Step by step
Solved in 4 steps
