22. The Profitability Fund had NAV per share of $21.80 on January 1, 2019. On December 31 of the same year the fund's NAV was $22.45. Income distributions were $0.60 and the fund had capital gain distributions of $0.96. Without considering taxes and transactions costs, what rate of return did an investor receive on the Profitability fund last year? * O A) 2.98% O B) 10.13% O C) 5.7% O D) 4.05% O E) None of the above

22. The Profitability Fund had NAV per share of $21.80 on January 1, 2019. On December 31 of the same year the fund's NAV was $22.45. Income distributions were $0.60 and the fund had capital gain distributions of $0.96. Without considering taxes and transactions costs, what rate of return did an investor receive on the Profitability fund last year? * O A) 2.98% O B) 10.13% O C) 5.7% O D) 4.05% O E) None of the above

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

See similar textbooks

Similar questions

The tax bracket and holdings of your client are as follows: Federal tax bracket = 33% Investment Annual Income June 30, Last Year's Purchase Price June 30, This Year's Market Price Money fund $6,500 $100,000 $100,000 11% T bonds $11,000 $100,000 $140,000 S&P 500 Index Fund $6,000 $100,000 $160,000 Computer stock fund $3,000 $100,000 $85,000 *There have been no capital gain distributions. During the 12 months from June 30 last year, through June 30 this year, the portfolio earned in annual yield and before-tax appreciation, respectively: 5.5% yield and 17.5% appreciation 5.5% yield and 21.3% appreciation 6.6% yield and 17.5% appreciation 6.6% yield and 21.3% appreciation
QuantAlpha fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%. Assume the rate of return on fund portfolio (before any taxes) is 6% per year. How much will an investment of $1000 in the fund grow to after 10 years?
13. hat Corp. establishing a fund where they pay $200 annually (ie. every year) into the fund. The interest rate thst the fund earns is an annual rate of 6%. What will be the balance of the fund at the end of the 5 years? Round to the nearest dollar. please also explain that formula(s) you used and variable inputs.
The New Fund had average daily assets of $3.2 billion in the past year. The fund sold $500 million and purchased $500 million worth of stock during the year. a. What was its turnover ratio? b. If the fund had an expense ratio of 1.1%, what were the total fees paid to the fund's investment managers?
You want to make a summary about Your investments. (future Value)2 years ago you invested 3 million HUF into a housing fund that earned 2.3% effective loss annually.v- 1.5 years ago you made a 0.7 million HUF bank deposit with 1.5% annual nominal return and monthly compounding. 1 year ago You invested 2.5 million HUF into a developing market fund and the daily return was0.021 %. The returns were accounted for at the end of each days. How much is the current worth of Your portfolio?
You invest $1500 today and another $2000 18-months from today in a fund earning j4 = 8% for the first 18 months followed by j₂ = 6% thereafter. How much do you have at the end of 4 years? OA. $4007.79 OB. $4377.73 OC. $4274.59 OD. $4276.84 27
You pay $21,600 to the Laramie Fund, which has an NAV of $18 per share at the beginning of the year. The fund deducted a front-end load of 4% at the time of the purchase. The securities in the fund then increased in value by 10% during the year. The fund's expense ratio is 1.3% and is deducted from year-end asset values. What is your rate of return on the fund if you sell your shares at the end of the year? Select the answer closest to the correct return. (Hint: The formula on slide #23 in the "Mutual Funds, ETFs, ..." slide set solves for the gross return. Your rate of return would be the gross return minus 1. The formula on slide # 23 can be written as X(1-f)(1+r-a)" (1-b) Gross Return = (1 - f)(1+r-a)" (1-b) or as Gross Return = X where X is the dollar amount invested. The other variables in the formula (f, r, a, n, b) are all defined in the slide set and in the lecture.) 4.2% 10% 8.7% O 4.7%
You have $5,000 to invest You are comparing two investment funds. Fund A returns 4%/yr compounded monthly Fund B returns 4.05% compounded quarterly. Which should you choose and why?
What would be your future account value if you invested $175 each month into a growth mutual fund for 20 years? Assume an average annual rate of return of 13 percent. O $212,675.99 O $246,485.08 O $186,476.36 O $198,317.41
A company has $44,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years? (PV of $1 EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $55,673 $45,760 $55,550 $54,560 $59,862
Vijay
4. Suppose a (very skilled) fund manager earns a safe return of 0.7% pertrading day. There are 252 trading days per year. (a) What will be your annualized holding period return on $100 invested in the fundif the manager allows you to reinvest in her fund the 0.7% you earn each day? (b) What will be your annualized holding period return assuming the manager putsall of your daily earnings into a zero-interest-bearing checking account and paysyou everything earned at the end of the year?

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS