To minimize risk, you've decided to invest your IRA money in a low cost index fund called Einstein's Index Fund 500 (EIF). You've decided you can afford to invest $200 per month, and your account is set to automatically buy $200 worth of shares on or near the 15th of every month. Your first contribution is on Jan 15. Answer the following questions:

On Feb 15, if EIF costs $40/share...

1. How many new shares did your contribution buy? 

 

1. How many total shares do you now own? 

 

1. How much have you spent so far on your whole portfolio?

 

1. What is the average cost you've paid per share?

 

1. What is the current value of your whole portfolio? 

 

1. How did you benefit from the share price dropping?

 

1. What is the downside of the share price dropping? 

Answer rating: 100% (QA)

a With a contribution of 200 and a share price of 40share your contribution can buy 5 shares 20040 5 ... View the full answer