24. LS Portfolio Fund invests in the stock markets. It diversifies its funds across many industries. At the start of year 2016, the market value of the stocks in the fund was $90 million with 5 million shares outstanding. The fund manager expects the stocks prices to increase by 15% by the end of year 2016. Also the fund is expected to pay a total dividend of $5 million. LS Portfolio Fund charges 12b-1 fees of 2% plus an expense ratio of 0.65%. If you are an investor in LS Portfolio Fund, would have been the rate of return to an investor who held the same securities as the fund manager in year 2016? * O A) 15% O B) 17.9% C) (17.9%) D) None of the above

24. LS Portfolio Fund invests in the stock markets. It diversifies its funds across many industries. At the start of year 2016, the market value of the stocks in the fund was $90 million with 5 million shares outstanding. The fund manager expects the stocks prices to increase by 15% by the end of year 2016. Also the fund is expected to pay a total dividend of $5 million. LS Portfolio Fund charges 12b-1 fees of 2% plus an expense ratio of 0.65%. If you are an investor in LS Portfolio Fund, would have been the rate of return to an investor who held the same securities as the fund manager in year 2016? * O A) 15% O B) 17.9% C) (17.9%) D) 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

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Similar questions

The composition of the Fingroup Fund portfolio is as follows: Price $ 35 34 26 25 Stock A B C D Shares 200,000 288,000 406,000 660,000 The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $46,000. There are 5.2 million shares outstanding. What is the net asset value of the fund? (Round your answer to 2 decimal places.) Net asset value
None
The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 200,000 $ 34 B 280,000 38 C 410,000 30 D 580,000 45 During the year the portfolio manager sells all of the holdings of stock D and replaces them with 200,000 shares of stock E at $30 per share and 300,000 shares of stock F at $67 per share. What is the portfolio turnover rate? (Round your answer to 1 decimal place.) Turnover rate %
Martin Brown is a fixed-income portfolio manager who works with large institutional clients. Brown is meeting with Sarah Redi, a consultant to the Horizon Redi Pension Plan, to discuss the management of the fund's, approximately R100 million. Treasury bond portfolio. The current Treasury yield curve is given in the following table. Maturity (years) 1 12 3 4 YTM (%) 6.0 8.0 9.0 9.5 Assume that the liquidity premiums for the one-year, two-year and three-year maturities (one year from now) are 1% 2.33% and 4%, respectively, determine the expected spot rates in one years time for the one, two, and three year maturing bonds.
Consider a no-load mutual fund with $457 million in assets and 12 million shares at the start of the year, and $520 million in assets and 13.21 million shares at the end of the year. During the year investors have received income distributions of $2.25 per share, and capital gains distributions of $1.57 per share. Assume that the fund carries no debt. What is the NAV at the START of the year? Group of answer choices 36.11 33.07 39.47 38.08 37.78
A pension fund is investing $60 million in a well-diversified equity portfolio E and $30 million in a well-diversified bond portfolio B. Total assets under management (portfolio of E and B) has expected return of 8% and standard deviation of 5%. Recently, the fund acquired new capital of $10 million and will use it to invest in a Cryptocurrency portfolio C. C is known to have expected return of 12% and standard deviation of 10%. Also, it is known that the covariance between E and C is 0.8% and the covariance between B and C is 0.4%. What would be the expected return and the standard deviation of the total assets under management (portfolio of E, B and C) when the fund makes this new investment?
Subject :- Finance
The Stone Harbor Fund is a closed-end investment company with a portfolio currently worth $450 million. It has liabilities of $4 million and 8 million shares outstanding. If the fund sells for $53 a share, what is its premium or discount as a percent of NAV? Multiple Choice
A hedge fund following the 2 & 20 approach has $150 Billion under management. Assuming the fund has not earned any profits over the past year how much will it earn in fees? $30,000,000,000 $20,000,000 $3,000,000,000 $117,000,000,000
aa.2
Use the following information to answer questions 23 - 24. Consider a three-factor model. You are in charge of a $100 million Centurion Select Fund. You have invested all your money into one stock. Consider the following multifactor model for the stock and factor observations over the last year. Factor Factor Beta Factor Realizations Market 1.2 12% Industrial Prod 0.5 7% Oil 0.3 3% TBill rates were 4%. Question 23 The predicted return on the stock is …………………………….. %. Question 24 Suppose the stock actually returns 15.5%. Your alpha is ………………………………. %.
Consider a mutual fund with $218 million in assets at the start of the year and with 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $4 million. The stocks included in the fund's portfolio increase in price by 8%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at year-end. Required: a. What is the net asset value at the start and end of the year? (Enter your answers in dollars rounded to 3 decimal places.) × Answer is complete but not entirely correct. Net Asset Value Start of the year $ End of the year $ 69 21.800 Per share 23.705 x Per share b. What is the rate of return for an investor in the fund? (Do not round intermediate calculations. Round your answer to 2 decimal places.) × Answer is complete but not entirely correct. Rate of 10.57 % return

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