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 hed 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.
please select the best answer from the choices provided
a
b
c
d

Explanation:

Step1: Calculate total cost

$\text{Total Cost} = 250 \times 25.30 = 6325$

Step2: Calculate current profit

$\text{Current Profit} = 7300 - 6325 = 975$

Step3: Compare to target profit

$\text{Target Profit} = 1000$, $975 < 1000$

Step4: Match to correct option

Current profit is less than desired.

Answer:

b. Mark should not sell his shares because he would not have as much profit as he'd like.