HW7 - FIN 655

Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.) Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of retums over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.) Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to…

Required: A hedge fund with $1.7 billion of assets charges a management fee of 2% and an incentive fee of 20% of returns over a money market rate, which currently is 5%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of (Enter your answers in millions rounded to 1 decimal place.) Answer is complete but not entirely correct. Portfolio Rate of Return (%) b.0 c. 5 d. 10 Total Fee ($ million) 34,000,000.0 34,000,000.0 34,000,000.0 51,000,000.0 Total Fee (%) 2.0 WNNN oooo 2.0 2.0 3.0 ››

Required: A hedge fund with $1.6 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money market rate, which currently is 4%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.) 18 Portfolio Rate of Return (%) Total Fee Total Fee (%) X 01:57:48 ($ million) a. -4 b. C. 寸 d. 8.

Required: A hedge fund with $1.8 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.) Portfolio Rate of Return (%) a. -1 b. 0 c. 6 d. 12 Total Fee ($ million) Total Fee (%)

Required: A hedge fund with $1.9 billion of assets charges a management fee of 2% and an incentive fee of 20% of returns over a money market rate, which currently is 4%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.) Portfolio Rate of Return (%) a.-2 b.0 G. 4 d. 8 Answer is not complete. Total Fee ($ million) 38.0 45.6 53.2 Total Foo (%) 1.7 2.00 2.4 28

See Attached

Please explain step by step

None

A portrollo consists of assets with the following expected returns: Technology stocks Pharmaceutical stocks Utility stocks Savings account a. What is the expected return on the portfolio if the investor spends an equal amount on each asset? Round your answer to two decimal places. % 26% 16 9 4 b. What is the expected return on the portfolio if the investor puts 53 percent of available funds in technology stocks, 15 percent in pharmaceutical stocks, 14 percent in utility stocks, and 18 percent in the savings account? Round your answer to two decimal places. %

8. Assume the risk-free rate is 6.7% and the expected return on the market portfolio is 7.8%. Use the capital asset pricing model (CAPM) to find the required return for each of the securities in the table here, 7. Review On Click the icon to see the Worked Solution. The required return for investment A is %. (Round to one decimal place.) The required return for investment B is %. (Round to one decimal place.) The required return for investment C is %. (Round to one decimal place.) The required return for investment D is %. (Round to one decimal place.) The required return for investment E is %. (Round to one decimal place.) 7: Data Table (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) Security Beta A 1.34 в 0.93 0.13 0.96 E 0.67

Please help me

Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid–ask spreads amount to 2.8% of the value of the trade. If the portfolio turnover rate is 50%, by how much is the total return of the portfolio reduced by trading costs? (Round your answer to 1 decimal place.)

Help me please

What percentage did you have in each? Complete the table below using the Investment Portfolio pie chart. Estmate the percentage for each of the asset classes using the pie chart as a reference.

A hedge fund with $1 billion of assets charges a management fee of 2% and an incentive fee of 20% of returns over a money market rate, which currently is 5%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of:a. −5%b. 0c. 5%d. 10%

Let it denote the effective annual return achieved on an equity fund achieved between time (t-1) and time t. Annual log-returns on the fund, denoted by In(1+i̟²), are assumed to form a series of independent and identically distributed Normal random variables with parameters µ = 7% and σ = 10%. An investor has a liability of £20,000 payable at time 10. Calculate the amount of money that should be invested now so that the probability that the investor will be unable to meet the liability as it falls due is only 5%. Express your answer to the NEAREST INTEGER and do NOT include a "£" sign. Note: From standard Normal tables, we have (-1.645) = 0.05.

Please give me true answer this financial accounting question

Suppose money invested in a hedge fund earns 1% per trading day. There are 250 trading days per year. What will be your annual return on $100 invested in the fund if the manager allows you to reinvest in the fund the 1% you earn each day? *Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.

None

A hedge fund with a 1 and 15 fee structure has a hard hurdle rate of 7.45%. If the incentive fee and management fee are calculated independently and the management fee is based on beginning-of-period asset values, an investor’s net return over a period during which the grows value of the fund has increase 19.45% is closest to   A. 10.85%. B. 12.65%. C. 16.65%. D. 21.74%.

Please show work, don't use EXCEL

You plan to invest in either a mutual fund X or mutual fund Y. The following information about the annual return (%) of each of these investments under different demand levels is available, along with the probability that each of these states of nature will OCcur: Demand Probability Fund X Fund Y High 0.4 30% 25% Medium 0.4 22% 34% low 0.2 17% 25% a) Compute expected return, standard deviation for each investment and covariance of the mutual fund X and mutual fund Y. b) Would you invest in the mutual fund X or Y? Explain. c) If you chose to invest in mutual fund X and the state of nature turns up to be the low demand, what do you think about the possibility of the opportunity loss of 8% in comparison to investing in mutual fund Y?

Two investments, X and Y, have the characteristics shown below. E(X) = $70, E(Y)3D$120, o =7,000, a = 14,000, and ory =7,500 If the weight of portfolio assets assigned to investment X is 0.3, compute the a. portfolio expected return and b. portfolio risk. a. If the weight of portfolio assets assigned to investment X is 0.3, the portfolio expected retum is $ (Type an integer or a decimal.) b. If the weight of portfolio assets assigned to investment X is 0.3, the portfolio risk is approximately $. (Round to two decimal places as needed.)

The Treasury bill rate is 4.9%, and the expected return on the market portfolio is 11.1%. Use the capital asset pricing model.   What is the risk premium on the market? (Enter your answer as a percent rounded to 1 decimal place.) What is the required return on an investment with a beta of 1.2? (Enter your answer as a percent rounded to 2 decimal places.) If an investment with a beta of 0.46 offers an expected return of 8.7%, does it have a positive NPV? If the market expects a return of 12.2% from stock X, what is its beta? (Round your answer to 2 decimal places.)

Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio.  The market's required rate of return is 17.75%, the risk-free rate is 5.65%, and the Fund's assets are as follows:Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.   Stock Investment Beta A    $225,000 1.35 B $335,000 0.75 C     $575,000 –0.45 D $1,055,000 1.98       A.21.28% B.18.26% C.18.08% D.19.96% E.18.83%

Please show working   Please answer ALL OF QUESTIONS 1 AND 2   1. Suppose you are the money manager of a $4.95 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $   280,000                                 1.50 B 460,000                                 (0.50) C 1,260,000                                 1.25 D 2,950,000                                 0.75 If the market's required rate of return is 8% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.    2. Madsen Motors's bonds have 13 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 10%; and the yield to maturity is 5%. What is the bond's current market price? Round your answer to the nearest cent.

State the return rate (in %) for your optimal portfolio.

Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid-ask spreads amount to 0.5% of the value of the trade. If the portfolio turnover rate is 55%, by how much is the total return of the portfolio reduced by trading costs? (Round your answer to 2 decimal places.) Reduction in portfolio returns %

Please see attached.

Hello, can you show how this shoould be made A hedge fund with $1 billion of assets charges a management fee of 2% and an incentive fee of20% of returns over a money market rate, which currently is 5%. Calculate total fees, both indollars and as a percent of assets under management, for portfolio returns of:a. −5%b. 0c. 5%d. 10%