1. The balance of a mutual fund on January 1, 2021 is 1,000. The following tableincludes all cash flow information over the one-year period ending on December 31,2021:isak) sopbudiyrove to bae ad te (XDate(0) X aysqValue of fund immediately Cash flow zamilprior to the cash flow1,2001,5001,100200-500200March 31, 2021June 30, 2021September 30, 2021The balance of the mutual fund on December 31, 2021, is X.The annual effective time weighted rate of return 20.888%.Using a simple interest approximation, determine the dollar weighted rate of return.

Time weighted return is 20.888%. Value at each period is goven excel for December 2021. Using the…

1. The balance of a mutual fund on January 1, 2021 is 1,000. The following table includes all cash flow information over the one-year period ending on December 31, 2021: Date Value of fund immediately Cash flow zam prior to the cash flow 1,200 1,500 1,100 200 -500 200 March 31, 2021 June 30, 2021 September 30, 2021 The balance of the mutual fund on December 31, 2021, is X. The annual effective time weighted rate of return 20.888%. Using a simple interest approximation, determine the dollar weighted rate of return.

1. The balance of a mutual fund on January 1, 2021 is 1,000. The following table includes all cash flow information over the one-year period ending on December 31, 2021: Date Value of fund immediately Cash flow zam prior to the cash flow 1,200 1,500 1,100 200 -500 200 March 31, 2021 June 30, 2021 September 30, 2021 The balance of the mutual fund on December 31, 2021, is X. The annual effective time weighted rate of return 20.888%. Using a simple interest approximation, determine the dollar weighted rate of return.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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15)Consider the following data on two mutual funds: Fund A Fund B Total net assets (assets less Liabilities) at beginning of year ¢ 1,000,000 ¢ 1,000,000 Number of shares outstanding at 100,000 100,000 beginning of year Annual operating expenses ¢ 10,000 ¢ 12,000 Value of securities sold during year ¢ 500, 000 ¢ 800,000 Value of securities purchased during ¢ 400,000 ¢ 900,000 year Brokerage fees for the year ¢ 9,000 ¢ 17,000 Number of shares outstanding at 110,000…
A fund has an initial investment of $100 million from investors. The investors will receive an 8 percent preferred return. After the preferred return is met, remaining distributions will be split 80 percent to the investors and 20 percent to the fund manager. Funds available for distribution after the regular fund management fee are as follows: Fund Cash Flow for Distribution After Management Fee Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8. Year 9 Year 10 $ 5.00 $ 10.00 $ 20.00 $ 30.00 $ 50.00 $ 40.00 $ 30.00 $ 20.00 $ 10.00 $ 5.00 Required: a. How many years will it take until the investor gets the 8 percent preferred return? b. What will be the split in distributions to the investor and the manager for the year found in which preferred return is achieved? c. What will the investor's IRR be over the entire 10 years? d. What will the total promote earned by the fund manager be for the 10 years?
A fund starts the year with NAV 54 per share. Over the year, the fund pays out income of 3.25 per share and capital gains distributions of 3.75 per share. Assets in the portfolio grew (shrank) by 0.01, and an expense ratio of 0.016 is charged at the end of the year. What is the rate of return on the fund? (Hint: calculate NAV1 first) O 0.0953 O 0.1110 O 0.1169 O 0.1055 0.1235
Problem 4-18 (Algo) Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.80%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and has an expense ratio of 0.20%. Assume the rate of return on both funds portfolios (before any fees) is 8% per year. Required: a. How much will an investment of $100 in each fund grow to after 1 year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Loaded Up Fund Economy Fund Investment Values b. How much will an investment of $100 in each fund grow to after 4 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Investment Values
Analyze the following three years of data relating to the MoMoney Mutual Fund, . It should report the amount of dividend income and capital gains distributed to the shareholders, along with any other changes in the fund's net asset value (b = 0.5). (Click the icon here ☐ in order to copy the contents of the data table below into a spreadsheet.) 2019 2018 NAV (beginning of period) ? ? 2017 $35.56 Net investment income 0.64 0.74 0.56 Net gains on securities 5.48 4.52 - 3.41 Dividends from net investment income 0.64 0.56 Distributions from realized gains 1.61 1.96 0.51 1.44 a. What is the total income from the investment operations? b. What are the total distributions from the investment operations? a. The total income from investment operations in 2019 is $ The total income from investment operations in 2018 is $ (Round to the nearest cent.) (Round to the nearest cent.) (Round to the nearest cent.) The total income from investment operations in 2017 is $ b. The total distributions from…
The western capital growth mutual fund has Total assets 812,000,000 Total liabilities 12,000,000 Total number of shares 40,000,000 What is the funds net asset value (NAV)?
On January 1, 1977, TL 100 was invested in an annual compound interest of 6%. January 1, 1987 in the following years 200 TL has been invested. Purpose of deposit to the fund from 1 January 1990 from 1 January 1995 is the receipt of payment to end. 1990-1995 what is the amount of payments between
A fund starts the year with NAV 46 per share. Over the year, the fund pays out income of 2.5 per share and capital gains distributions of 2.5 per share. Assets in the portfolio grew (shrank) by -0.0025, and an expense ratio of 0.014 is charged at the end of the year.. What is the rate of return on the fund? (Hint: calculate NAV1 first) O 0.0969 O 0.1076 O 0.1002 O 0.0877 O 0.0922
Calculate the sales charge (in $) and sales charge percent for the mutual fund. (Round percents to one decimal place.) Fund OfferPrice Net AssetValue SalesCharge SalesCharge % Northstar A: MuFl A $13.45 $12.81 $ %
A mutual fund’s net asset value is $39.30, but the fund charges a 3 percent load fee (front- loaded) and an exit fee of 1 percent (if redeemed in 6 months) of net asset value. An individual client purchases 10 shares of the mutual fund on Jan 5 of year 20X1. During the year 20X1, the fund distributes $3.45 capital gain and $0.75 dividend income. The net asset value rises to $42.12 on Jan 5 of year 20X2 and the investor redeems the shares. a) What is the percentage return the fund can report that was achieved by its portfolio managers? b) What is the percentage return the individual earned on the investment? Why is this answer different from the answer in part (a)?
20)Corporate fund started the year with a net asset value of GHS12.25. By year-end, its NAV equaled GHS12.10. The fund paid year-end distributions of income and capital gains of GHS1.50. What was the (pretax) rate of return to an investor in the fund?
Nikul

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