6. Assume the new investor then sells the 420 shares. What is his profit? What is the annualized return? The fund sells 800 shares of stock 4 to raise the needed funds. Solution: The 420 shares are worth 420 x $122.08 = $51,273.60, for a profit of $1,273.60. The one day return is $1,273.60/50,000 = 2.54%. Annualized, this is 637% in nominal terms, assuming 250 trading days. The new fund is: Shares Stock owned Price 1 1,000 $ 2.03 12345 5,000 $ 51.37 2,800 $ 29.08 9,200 $ 67.19 3,000 $ 4.42 cash n/a. $4,886.40