Suppose that, as a fund manager, you purchase 5,000 shares of Company X on 1 January 2019 for $10 each in order to keep and earn dividends. Simultaneously, you also purchase 4,000 shares of Company Y for $7.5 each for trading purposes. The share price of Company X increases to $12 first, but after some days it drops to $11.2 and you immediately sell 3,000 shares. On the other hand, the share price of Company Y drops to $7 first, but after some days it increases to $7.6 and you immediately sell 2,500 shares. (Note that, funds make valuation on a daily basis) Assuming that there are no more price movements throughout the year, what would be the total comprehensive income as of the year end? A) $2,400 B) $4,000 C) $6,400 D) $7,100 E) Other (Please Specify)
Suppose that, as a fund manager, you purchase 5,000 shares of Company X on 1 January 2019 for $10 each in order to keep and earn dividends. Simultaneously, you also purchase 4,000 shares of Company Y for $7.5 each for trading purposes. The share price of Company X increases to $12 first, but after some days it drops to $11.2 and you immediately sell 3,000 shares. On the other hand, the share price of Company Y drops to $7 first, but after some days it increases to $7.6 and you immediately sell 2,500 shares. (Note that, funds make valuation on a daily basis) Assuming that there are no more price movements throughout the year, what would be the total comprehensive income as of the year end?
A) $2,400
B) $4,000
C) $6,400
D) $7,100
E) Other (Please Specify)
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