2. Over the last 10 years four mutual funds all had the same mean rate of return, 12%. The mutual funds had different standard deviations as follows: Mutual Money 8%, Co-joined Investments 6%, Together Fund 4%, All-One Fund 9%. Is there one fund that is the most consistent in rate of return? In other words, is there one fund that shows the smallest amount of variation in its rate of return? Explain.
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: Step 1:Bonds are a type of debt capital instrument that help an entity raise money and meet its…
Q: Thomson Trucking has $12 billion in assets, and its tax rate is 25%. Its basic earning power (BEP)…
A: Step 1: Calculate EBIT (Earnings Before Interest and Taxes):The Basic Earning Power (BEP) ratio is…
Q: Problem 14-24 Calculating the Cost of Debt (LO3) Cote Import has several bond issues outstanding,…
A: Step 1: After-tax cost of debt=Coupon rate×(1−Tax rate) Given the corporate tax rate is 34%, let's…
Q: Discuss the risk and return indicated by different bond ratings. Support your answer with references…
A: Required Interest Rates and RiskA bond's credit rating directly affects the required interest rate…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: b. Maximum possible growth rate (fixed debt ratio, no equity issuance)When the debt ratio is fixed,…
Q: General Meters is considering two mergers. The first is with Firm A in its own volatile industry,…
A: Step 1:a.Merger with Firm A:Expected Earnings = 0.30 * 60 + 0.20 * 75 + 0.50 * 90Expected Earnings =…
Q: None
A: The computation of missing figures is as follows:Resultant values:
Q: help please answer in text form with proper working and explanation for each and every part and…
A: Step 1:⟶Introduction/OverviewThe given problem involves determining the optimal production plan for…
Q: Given the following data, what is the stocks expected growth rate according to the Gordon model?…
A: Given:Dividend per share just paid = $4.50Current market price = $40.00Required rate of return (r) =…
Q: None
A: So, the difference between the after-tax returns from the IRA versus the non-IRA investment is…
Q: None
A: Question 25:Problem: The bonds issued by United Corp. bear a coupon of 5 percent, payable…
Q: The force of a spring obeys Hooke's law: F = -kx for some positive constant > 0, where x = x(t)…
A:
Q: The table presents the actual return of each sector of the manager's portfolio in column (1), the…
A: To analyze the performance of the manager and compare it to the benchmark, we'll follow these…
Q: Larissa Warren and Dan Ervin have been engaged in conversations about the future prospects of East…
A: Detailed explanation:Here is a comprehensive analysis of the IPO considerations for East Coast…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: a. FNB's earning assetsInvestments4,500Federal funds sold2,295Loans16,425Reserve for loans…
Q: Current assets Net fixed assets Universal Products Company Financial Statements, 2021 and Pro Forms…
A: Given DataFrom the balance sheet:Actual 2021:Current assets: $2,900Net fixed assets: $2,900Total…
Q: 13 Skipped Suppose your firm is considering investing in a project with the cash flows shown below,…
A: Payback is the time period taken to recover the initial investment amount. Its formula is: Payback =…
Q: Estimate the best case scenario for total variable costs for a project with the following base case…
A: Step 1: To estimate the best case scenario for the total variable costs, we need to compute for the…
Q: Please correct answer and don't use hand rating
A: Solution: We'll first calculate the total value of the stock dividend and then subtract it from the…
Q: None
A: 1) First, let's calculate the number of days for each balance: April 8 to April 13: 5 days at $528…
Q: COCO has the following capital structure. What is their WACC? State as decimal. WACC $ Weight Cost…
A: The Weighted Average Cost of Capital (WACC) is the average rate of return a company is expected to…
Q: Berkshire Hathaway is considering the purchase of A.B.Bearcat. The company, A.B.Bearcat, is expected…
A: To determine how much Berkshire Hathaway must spend in the present to acquire A.B. Bearcat, we must…
Q: 1.222Weighted Average Cost of Capital (WACC) and Risk Adjusted Discount Rate (RADR)are often used…
A: 1. Weighted Average Cost of Capital (WACC):Definition: WACC is the average rate of return that…
Q: Tanaka Machine Shop is considering a four-year project to improve its production efficiency. Buying…
A: The problem involves the determination of the NPV or the net present value. NPV pertains to the…
Q: You purchased a stock at a price of $497.82. The stock paid a quarterly dividend of $5 per share and…
A: To calculate the total percentage return for the year, we need to consider both the capital gains…
Q: 3 2 points You are looking to buy your first car. You have figured that that you can afford to make…
A: To solve the equation using the formula for the present value of an annuity, we…
Q: Please correct answer and step by step solution
A: Explanation of the Rate of Return:The Rate of return on investment is the return that one has earned…
Q: The Campbell Company is considering adding a robotic paint sprayer to its production line. The…
A: Let's compute:Book Value at End of Year 3:Book Value=Initial Cost−(Depreciation Year 1+Depreciation…
Q: Suppose the interest rate is 6.8% APR with monthly compounding. What is the present value of an…
A: ANSWER :
Q: Answer using excel and make sure answer is correct. here is the data only answer based on this
A: Detailed Calculations:Year 1 OCF (at t=1):187500/(1+0.10)1=187500/1.10=170,455 Year 2 OCF (at…
Q: A bond that has a face value of $2,000 and coupon rate of 4.30% payable semi-annually was redeemable…
A: To calculate the purchase price of the bond on February 10, 2015, given the bond details and the…
Q: Changing cash conversion cycle Camp Manufacturing turns over its inventory 5 times each year, has an…
A: a. Operating Cycle and Cash Conversion Cycle 1. Calculate the Inventory Turnover Ratio: The formula…
Q: Taufel, Inc. is considering implementing a cost-cutting project. The pre-tax cost reduction is…
A: Given:Annual Saving(a)=18,000Tax rate(t)=32% or 0.32CCA(d)=20% or 0.20Discount rate(r)=9% or…
Q: None
A: Step 1: Calculate the initial investment: 100 shares × $240 per share = $24,000Step 2: Calculate the…
Q: Please correct answer and don't use hand rating
A: The value of a firm is given by:where:FCF0=$42,600r=19% Part (a)Growth Rate g=0%If the cash flows…
Q: None
A: Anthracite is the type of coal with the highest energy content per kilogram. It's the highest rank…
Q: Matrix Corp Inc. is considering a 15 percent stock dividend. The capital accounts are as follows:…
A: a. Restate the equity section at year end after the 15 percent stock dividend.Step 1: Calculate the…
Q: Royal Mount Games would like to invest in a division to develop software for video games. To…
A: Calculate the change in each working capital component:Change in Cash: ΔCash=Cash Year 1−Cash Year…
Q: help
A: Step 1: Discounting Total Expenses (C1)In this step, we determine how much money we need today to…
Q: Q1: A U.S.T-Bill is priced at 93.75 for 90 days. The actual futures price…
A: Q1: The price of a T-Bill is less than its face value. As a result, to reflect this discount, the…
Q: 3.Anytime Coffee has 160,000 shares of stock outstanding, sales of $1.94 million, net income of…
A: Ans:
Q: None
A: Question 11: Equivalent Annual Percentage Rate (APR)The payday loan company charges 4% interest for…
Q: a) Company X is expected to pay an end-of-year dividend of $5.25 a share. After the dividend its…
A: Let's give it a try. To provide an precise answer, I believe further reference is necessary, but I…
Q: which type of preference shares are better for a company to issue
A: Introduction to Preference SharesPreference shares (or preferred stock) are hybrid securities that…
Q: not use ai please
A: Explanation of Recapitalization:Recapitalization is a corporate restructuring strategy where a…
Q: 1 The house price is $475,000. The mortgage term is 15 years. Calculate your monthly payment if you…
A: Answer:Answer1: Mortgage Monthly Payment CalculationGiven:House Price: $475,000Down Payment: 20% of…
Q: A 20-year bond with 8% annual coupons is purchased at a price of P. The face amount of the bond is…
A: 1. Coupon Rate:The coupon rate is the annual interest rate paid by the bond issuer to the…
Q: . Consider the problem of investing in a risky project. A project costs $500. The annual cash flow…
A: Option a: This option is incorrect because the value is too high considering the initial investment…
Q: Kirklin Clinic is evaluating a project that costs $60,000 and has expected net cash inflows of…
A: The Modified Internal Rate of Return (MIRR) is a financial measure of an investment's…
Q: You own debt with face amount of $150 Million that you lent to a firm managed by its sole…
A: Part (d): You Invest $30 Million as Junior Debt Holder Optimal Face Value for Junior Debt:Since you…
Step by step
Solved in 2 steps
- You wish to compare the performance of two different mutual funds. Return ßp M_Fund A 0.072 0.9 M_Fund B 0.078 1.1 During the same period, returns for the following were: S&P500 rf 0.075 0.045 Which mutual fund performed better on a risk-adjusted basis, i.e. RE: alpha? Pick the best answer, e.g. less negative alpha closer to 0 -- is better. Both funds delivered the same alpha or risk-adjusted returns One fund beat the S&P benchmark Both funds underperformed relative to their risk M_Fund B delivered positive alpha M_Fund B had higher alpha than M_Fund AInvestments are made to earn a return, but making investments requires the individual to bear risk. A higher return by itself does not necessarily indicate superior performance. It may simply be the result of taking more risk. Given this context, answer the following two-part questions. A mutual fund generates a 10.8 percent return. During the same period, the market rose by 8.8 percent. If the risk-free rate was 2 percent and the fund had a beta of 1.2 : Did the fund outperform the market? Explain your response.Rank the following funds based on Sharpe Ratio, Treynor Ratio, Jensen’s Alpha, Sortino Ratio, M squared. Explain the difference in ranking of the funds if any as per various measures. Compare each of the fund with the benchmark index and explain the better or poor performance of the funds. The average return on the risk-free securities is 6% during the period of measurement. Mutual Fund Return (%) Total Standard Deviation (%) Downside Standard Deviation (%) Correlation with market Contra Fund 25 15 12 0.65 Equity Minimum Variance Fund 28 18 15 0.75 Focused Equity Fund 21 15 13 0.72 Midcap Fund 30 17 16 0.68 Benchmark Index 27 16 14
- Last year, two mutual funds, OHH and FLL, reported the same return and standard deviation, but OHH's beta was higher than FLL's beta. Based on the Sharpe measure, which mutual fund performed better last year? A. FLL B. OHH C. They had the same performance. D. Undetermined because their alphas are unknown.I need someone to check my answer In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic fund. Rates of return on the market index are given for comparison Year Fund Return (%) Standard deviation mean Deviation 2 Market index return (%) Standard Deviation (Mean) Deviation2 1 -1.4 -16.52 272.91 -0.5 -11.8 139.24 2 24.0 8.88 77.44 16.0 4.7 22.09 3 41.9 26.78 717.17 31.4 20.1 404.01 4 10.9 -4.22 17.81 9.9 -1.4 1.96 5 0.2 -14.92 222.61 -0.3 -11.6 134.56 TOTAL 75.6 1,307.94 56.5 701.86 AVERAGE 15.12 261.59 11.3 140.37 SD 16.17 11.85 Calculate The average return on Mesozoic Fund Return and Market Portfolio Return Fund return = (-1.4+24+41.9+10.9+0.2)/5 = 15.12 Market index return = -0.5+16+31.4+9.9+ (-0.3)]/5 =…17. Average Return and Standard Deviation. In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. Calculate (a) the average return on both the fund and the index and (b) the standard deviation of the returns on each. Did Ms. Sauros do better or worse than the market index on these measures? (L011-3) 1 2 3 4 5 Fund - 1.2 +24.8 +40.7 +11.1 +0.3 Market index -0.9 +16.0 +31.7 +10.9 -0.7
- In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. Fund Market index 1 -1.2 -0.9 2 +24.8 +16.0 a. Average return a. Standard deviation b. Did Ms. Sauros do better or worse than the market index on these measures? +40.7 +31.7 4 +11.1 +10.9 a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. b. Did Ms. Sauros do better or worse than the market index on these measures? Mesozoic Fund Return Market Portfolio. Return +0.3 -0.7 11.40In a recent 5tear period, mutual fund manager Diana sharks produced the following percentage rates of return for the Mesozoic fund. Rates of return on the market index are given for comparison. A. Calculate the average return on both the fund and the index and the standard deviation of the returns on each. Did Ms. Sauros do better or worse than the market index on these measures?17. Average Return and Standard Deviation. In a recent five-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. Calculate (a) the average return on both the fund and the index and (b) the standard deviation of the returns on each. Did Ms. Sauros do better or worse than the market index on these measures? (LO11-3) Fund Market index 1 -1.2 -0.9 2 +24.8 +16.0 3 +40.7 +31.7 4 +11.1 +10.9 5 +0.3 -0.7
- In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. 1 2 3 4 5 Fund −1.2 +24.5 +40.5 +11.5 +0.3 Market index −1.0 +17.0 +31.5 +10.8 −0.8 a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Did Ms. Sauros do better or worse than the market index on these measures?In the last quarter of 2017, a group of 64 mutual funds had a mean return of 4.2% with a standard deviation of 4.9%. If a Normal model can be used to model them, what percent of the funds would you expect to be in each region? Use the 68-95-99.7 rule to approximate the percentages rather than using technology to find the values more precisely. Be sure to draw a picture first. a) Returns of 9.1% or more c) Returns between - 10.5% and 18.9% b) Returns of 4.2% or less d) Returns of more than 14.0%In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. 2 3 4 Fund -1.5 +24.1 +42.0 +11.0 +0.5 Market index -0.6 +17.0 +31.5 +10.0 -0.4 a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Did Ms. Sauros do better or worse than the market index on these measures? Mesozoic Fund Market Portfolio Return Return Average return а. Standard deviation Did Ms. Sauros do better or worse than the b. market index on these measures?