• Now, it is June 2014, the last few months have been like a nightmare to Ron. FB stock price has been consistently rising. Ron is a hard-headed and kept responding to margin calls by pouring cash into his account with an expectation of an n shape drop in the price. Ron started to lose hope, so he decided to cover his position at a price of $68 and just forget this bad experience. His advisor says now it is my turn to say I told you!!! With hundreds of millions using social media around the world, it is not going nowhere!!!).

7. How much money does Ron have now (remember he had $ 500,000 before starting this short selling investment)?

1. $100,000
2. $220,000
3. $780,000
4. $140,000

• Now, it is early 2015. Ron is looking back at his investment experience and is trying to learn his lessons! But this time, he decided that the days of picking single stocks are over! Further, Ron became too busy to have such active trading style. This time, Ron wants to try investing his money at a mutual fund and he has a total of $300,000 to invest after he convinced his wife to invest part of her savings with him. Currently Ron is considering two alternatives. alternative A, Bloom closed-end mutual fund with a net asset value of $15 per share and a front-end load of 5%, and alternative B, TWE open-end mutual fund with an offering price of $16 per share and is sold with a front-end load of 8%.

8) What is the offering price of the Bloom mutual fund?

1. $15.78
2. $11.76
3. $16
4. $14.2

9) What is the net asset value of TWE mutual fund?

1. $ 16
2. $14.72
3. $ 17.39
4. $ 11.76