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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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.
"The following table gives the rate of return for a certain mutual fund from 2010 to 2014: Year Rate of Return 2010 -5.9% 2011 11.4% 2012 1.4% 2013 12.7% 2014 6.5% Compute the overall rate of return during this period. Round your answer to the nearest tenth of a percent."
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?
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
1. A mutual fund with K100 million in assets at the start of the year and with 10 million shares outstanding invests in a portfolio of stocks that provides no income but increases in value by 10 %. Required: What is the rate of return in the fund? If a fund has an initial NAV of K20 at the start of the month makes income distributions K0.15 and capital gain distributions of K0. 05 and ends the month with NAV of K20.10. Calculate the monthly rate of return. 2. An equity fund has a front end load of 4 % and special fees of 0.5% annually as well as back-end fees that start at 5 % and fall by 1 % for each full year the investor holds the portfolio until the fifth year. Assuming the rate of return on the fund net of operating expenses is 10 % annually, what will be the value of a K10 000 investment in the equity fund shares if the shares are sold after 1 year, 4 years and 10 years?
aa.2
sofie Inc. has an investment fund amounting to P4,500,000. The portfolio consists of three stocks within the retail industry. P1,350,000 is invested in HLCM, 45% in MWIDE and the remaining in PHN. HLCM and PHN has a beta of 1.50 and 2, respectively. The average return on the market is 9.50% and it is 5% greater than the risk-free rate. The portfolio beta of investment held by Bulldogs Inc. is 2.What is the portfolio’s required rate of return?
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
Bha

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