An investor buys 400 shares of stock in a fund when the net asset value is $23.79 and the offer price is $23.89. the investor sells these shares when the net asset value is $50.34 and the offer price is $50.46. determine the amount of profit the investor earns. a. $10,580 b. $10,620 c. $10,628 d. $20,136 select the best answer from the choices provided

The answer is A. Have a splendid day fellow students!!!

Step-by-step explanation:

ok then what happened.

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%