MHB Math for trading/investing conversion?

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The discussion focuses on calculating the equivalent value of partial investments in a REIT or fund based on price changes. The example provided starts with an investment of $20 in an item priced at $7,000, illustrating how to determine the value of that investment as the price fluctuates. When the price rises to $7,500, the investment value increases to approximately $21.43, and if it drops to $7,250, the value adjusts to about $20.71. The calculations demonstrate the proportional relationship between the investment amount and the asset price changes. Understanding this method allows for better decision-making in trading and investing.
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Greetings, all. I’m not exactly sure how to word this, so hopefully this makes sense. I’m trying to figure out how to set this up, maybe a ration?

Let’s say I’m looking at a REIT, or maybe a fund. However, instead of buying the full amount of the item, I’m looking at a part.

To start, let’s say, to try and keep the numbers easy, that the item starts at \$7,000. Later, it rises to \$7,500. Still later, it drops to \$7,250.

Now, let’s say I’m using \$20, as my start. How do I know what my equivalent will be, at \$7,500. Then, as it drops, what will my equivalent be, when I want to sell. I’m also looking to do similar, with a start of \$50, and \$100, as examples.

I hope this has made sense, and I appreciate help!
 
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I am not sure what you mean by "20 dollars, as my start". Do you mean investing just 20 instead of the full 7000? If so your share is \frac{20}{7000}= \frac{2}{700}. So when it goes up to 7500 your share is \frac{2}{700}(7500) or 21.43. If it then goes down to 7250 your share is \frac{2}{700}(7250) or 20.71.
 
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