Assume That You Have Invested $500 000 to Purchase Shares

question 39

Multiple Choice

Assume that you have invested $500 000 to purchase shares in a hedge fund reporting $800 million in assets, $100 million in liabilities and 70 million shares outstanding. Your initial lock-out period is 3 years. If the share price after 3 years increases to $15.28, and using your calculation for how many shares you purchased, what is the value of your investment?

• A)$553 600
• B)$625 000
• C)$733 800
• D)$764 000

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Definitions:

Ethical Theory

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct.

Bonuses

Bonuses are additional financial incentives given to employees or individuals beyond their regular salary or earnings, typically as a reward for performance or achieving specific targets.

Thriving

A state of flourishing or prospering, often characterized by vigorous growth, success, or well-being.

Ethical Behavior

Actions conducted according to morally good principles, standards, and codes of conduct.