Problem
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 Mar 15, if EIF costs $37/share...
A. How many new shares did your contribution buy?
B. How many total shares do you now own?
C. How much have you spent so far on your whole portfolio?
D. What is the average cost you've paid per share?
E. What is the current value of your whole portfolio?
F. Oh no! The share price is even lower. Why might some investors consider this a good thing?