An investor purchases 1,000 units of an XYZ Mutual Fund ETF at $25.00 per unit through their online brokerage. At the end of the day, the ETF's Net Asset Value (NAV) is $25.20. If the investor sells their units an hour later at $25.10, what was the total return from their trading activity, excluding commissions?

Question: An investor purchases 1,000 units of an XYZ Mutual Fund ETF at $25.00 per unit through their online brokerage. At the end of the day, the ETF's Net Asset Value (NAV) is $25.20. If the investor sells their units an hour later at $25.10, what was the total return from their trading activity, excluding commissions?

Answer options: ✅ $100 gain.

• $200 gain.
• $50 loss.
• $150 gain.

Correct answer: $100 gain.

Explanation: The investor bought 1,000 units at $25.00 for a total cost of $25,000. They sold 1,000 units at $25.10 for a total of $25,100. The total return is the selling price minus the purchase price, which is $25,100 - $25,000 = $100 gain. The end-of-day NAV is irrelevant for this specific trading profit calculation.