Recommended_2020_Portfolio_Asset_Allocation

Compared to direct transactions between ultimate fund users and providers, fee-charging, profit-oriented financial institutions provide the benefit of _____. I. reducing the search costs and improving matching between fund users and providers II. transforming the size, duration, risk and liquidity of assets to better serve the needs of fund users and providers III. providing information-related products and services to fund users and providers Group of answer choices a. I b. I and II c. I and III d. I, II and III

question 20 choose the correct answer from the choices

Problem 6-09 As chief investment officer of a small endowment fund, you are considering expanding the fund's strategic asset allocation from just common stock (CS) and fixed-income (FI) to include private real estate partnerships (PR) as well: Current Allocation: 70 percent of Asset CS, 30 percent of Asset FI Proposed Allocation: 60 percent of Asset CS, 20 percent of Asset FI, 20 percent of Asset PR You also consider the following historical data for the three risky asset classes (CS, FI, and PR) and the risk-free rate (RFR) over a recent investment period: ry: Asset Class E(R) CS FI PR CS 8.3% 14.0% 1.0 FI 5.5 7.7 0.3 1.0 PR RFR 7.5 2.7 12.2 0.5 0.1 1.0 You have already determined that the expected return and standard deviation for the Current Allocation are: E(Rcurrent) = 7.46 percent and current = 10.722 percent. a. Calculate the expected return for the Proposed Allocation. Round your answer to two decimal places. % b. Calculate the standard deviation for the Proposed Allocation. Do…

Y9

finance

eBook Problem 6-09 As chief investment officer of a small endowment fund, you are considering expanding the fund's strategic asset allocation from just common stock (CS) and fixed-income (FI) to include private real estate partnerships (PR) as well: Current Allocation: 60 percent of Asset CS, 40 percent of Asset FI Proposed Allocation: 45 percent of Asset CS, 25 percent of Asset FI, 30 percent of Asset PR You also consider the following historical data for the three risky asset classes (CS, FI, and PR) and the risk-free rate (RFR) over a recent investment period: Asset Class CS FI PR RFR E(R) % 8.1% 0 16.4% 8.3 11.2 CS 1.0 0.3 0.7 rij: FI 1.0 5.1 6.7 3.5 You have already determined that the expected return and standard deviation for the Current Allocation are: E(Rcurrent) = 6.90 percent and current = 11.289 percent. a. Calculate the expected return for the Proposed Allocation. Round your answer to two decimal places. 6.93 b. Calculate the standard deviation for the Proposed Allocation.…

In your own words, describe ETF’s investment objective, strategy and benchmark. Please include fund category and class of assets it invests in.

Oliver's Place is a nonprofit entity that cares for dogs until they are adopted. It uses fund accounting and uses a UCF, an RCF, and an EF. It charges its expenses to the care of animals program, special programs, and administrative expenses. Following are some of its transactions for its fiscal year. Prepare the journal entries needed to record these transactions, indicating the fund used for each entry and showing net asset classifications, where appropriate. 1. During the year, Oliver's Place received pledges of $80,000 without donor restrictions. It estimated that 95 percent of the pledges would be collected in cash. 2. It received the following gifts from various donors: a. Donor A made a gift of common stock that had a fair value of $16,000. Donor A stated that the gift could be used for any purpose. b. Donor B made a cash gift of $4,000, stipulating that it could be used only for a new program to take calm dogs to visit elderly people. c. Donor C made a gift of common stock that…

The long-term asset account group is used for which of the following funds? Enterprise Capital Projects Internal Service General Both b and d

Compound Interest, Balance Sheet, Profits, and Capitalization Table   3. "The MacArthur Fellowship is a $625,000, no-strings-attached award to extraordinarily talented and creative individuals as an investment in their potential. There are three criteria for selection of Fellows: (1) Exceptional creativity; (2) Promise for important future advances based on a track record of significant accomplishments; and (3) Potential for the Fellowship to facilitate subsequent creative work. Each fellowship comes with a stipend of $625,000 to the recipient, paid out in equal quarterly installments over five years (therefore, $31,250 per quarter)." One of the recipients in 2019 was "Mary Halvorson, a guitarist, ensemble leader, and composer who is pushing against established musical categories with a singular sound on her instrument and an aesthetic that evolves with each new album and configuration of bandmates. She melds her jazz roots with elements of experimental rock, folk, and other musical…

McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $533,000, has an expected useful life of 15 years, a salvage value of zero, and is expected to increase net annual cash flows by $72,300. Project B will cost $366,000, has an expected useful life of 15 years, a salvage value of zero, and is expected to increase net annual cash flows by $50,800. A discount rate of 9% is appropriate for both projects. Click here to view PV table. Compute the net present value and profitability index of each project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to O decimal places, e.g. 125 and profitability index answers to 2 decimal places, e.g. 15.25. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

1. **Definition of Carried Interests:* - Carried interests are a share of profits that general partners in an investment fund receive as compensation. These interests represent a percentage of the fund's profits and are typically awarded to the fund managers as an incentive to achieve positive returns. The taxation of carried interests involves considerations for both the fund managers and the investors in the fund. 2. **Taxation of Carried Interests:** - The tax treatment of carried interests is a complex process. Typically, fund managers pay taxes on their carried interests at capital gains rates, which are often lower than ordinary income tax rates. This treatment is subject to specific conditions, including holding the investment for a certain period. Investors, on the other hand, may also be subject to tax implications based on their share of profits from the fund. 3. **Impact on Financial Reporting:** - The accounting for tax on carried interests is an essential aspect of…

1. Assume that George Mason Medical Center has investments in a Building Replacement Fund with the following balances as of July 15, 2022 listed by category. The Investment Committee of the Board has approved a recommendation to reallocate these funds, and to include for the first-time common stocks from non-US companies. Assume that the portfolio will be rebalanced on August 1, 2022, to equal the Board's targeted desired allocation percentages. George Mason Medical Center Recommended Asset Allocation for Building Replacement Fund Rebalancing of Investment Portfolio as of July 15, 2022 Investment Description Cash and Cash Equivalents Fixed Income - Domestic Bonds Fixed Income - International Bonds Equities Large Cap Growth Equities Large Cap Value Equities - Mid/Small Cap Growth Equities Mid/Small Cap Value Equities International Total S Balance on 7/15/2022 12,000,000 32,000,000 10,000,000 13,000,000 25,000,000 11,000,000 12,000,000 S 115.000.000 Current Allocation % 10.4% 27.8% 8.7%…

Provide correct answer for this accounting question

QUESTION 4  (a) QV Logistic Corporation wish to raise additional funds externally to finance a newproject,(i) Discuss the type of financing available  Answer should be written with proper example and elaborations. Thank you.

vv.2

A techniques-Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and after-tax cash inflows associated with these projects are shown in the following table. Cash flows Initial investment (CF) Project A $60,000 Project B $100,000 Project C $90,000 Cash inflows (CF), t=1 to 5 $20,000 $31,500 $32,000 a. Calculate the payback period for each project. b. Calculate the net present value (NPV) of each project, assuming that the firm has a cost of capital equal to 12%. c. Calculate the internal rate of return (IRR) for each project. d. Indicate which project you would recommend. a. The payback period of project A is years. (Round to two decimal places.) % [7%