A $20 million fund with 10% incentive fees and 1% management fees that lasts 4 years, earns a profit of +10%, +6%, +3%, +4%, and a loss of -10% in each of the first five years. What is the percentage of beginning NAV that is earned by the Hedge fund at the end of five years? Show how this percentage varies when the hurdle rate is 0%, 5%, and 10%. Make any necessary assumption as required.

A $20 million fund with 10% incentive fees and 1% management fees that lasts 4 years, earns a profit of +10%, +6%, +3%, +4%, and a loss of -10% in each of the first five years. What is the percentage of beginning NAV that is earned by the Hedge fund at the end of five years? Show how this percentage varies when the hurdle rate is 0%, 5%, and 10%. Make any necessary assumption as required.

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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Consider the following information for the Alachua Retirement Fund, with a total investment of $4 million. The market required rate of returnis 12%, and the risk-free rate is 6%. What is its required rate of return? Stock Investment Beta A $500,000 1.2 B 500,000 -0.4 C 1,000,000 1.5 D 2,000,000 0.8 Total 4,000,000 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.) Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of retums over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.) Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to…
Assume a fund has $100 million and a target gross exposure of 180% and a target net exposure of 50%. What is the funds target long market value, short market value and net exposure in dollars?
The Investments Fund sells Class A shares with a front-end load of 6% and Class B shares with 12b-1 fees of 5% annually as well as back-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolio (until the fifth year). Assume the portfolio rate of return net of operating expenses is 10% annually. If you plan to sell the fund after four years, are Class A or Class B shares the better choice for you? What if you plan to sell after 15 years?
The value in pounds of a fund at time t = 0 is V0 = 50, 000. After one year (at t = 1) it has increased to V1 = 51, 500 and at that time £1, 500 is withdrawn. After two years (at t = 2) the fund is worth V2 = 50, 800. (a) Compute the time-weighted rate of return. (b) If the fund is liquidated after two years what is the yield that has been achieved?
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?
Loaded-Up Fund charges a 12b-1 fee of 1.00% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2.0%, but has no 12b-1 fee and an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is 12% per year. How much will an investment of $1,000 in each fund grow to after: (Round your answers to 2 decimal places.) a. 1 year b. 3 years c. 10 years Loaded-Up Fund Economy Fund
Loaded-Up Fund charges a 12b-1 fee of 0.75% and maintains an expense ratio of 0.50%. Economy Fund charges a front-end load of 3.0%, but has no 12b-1 fee and has an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is 10% per year. Required: How much will an investment of $1,000 in each fund grow to after: Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. a. 1 year b. 3 years c. 10 years Loaded-Up Fund Economy Fund
You are considering investing in a mutual fund. The fund is expected to earn a return of 12 percent in the next year. If its annual return is normally distributed with a standard deviation of 4.50 percent, what return can you expect the fund to beat 95 percent of the time? what is the expected return(%)?
Compare the benefits and drawbacks to long-term vs. short-term leases from EITHER the point of view of the lessor or the lessee. REAL ESTATE FINANCE
High Growth Fund has a front load of 5% and expected return of 14.5%. Normal Fund has no load. And expected return of 13.8%. Which fund would you hold if you expect to hold the fund for 5 years? How about holding the fund for 10 years? Please show how to solve in excel
Consider a no-load mutual fund with $325 million in assets and 13 million shares at the start of the year and with $375 million in assets and 14 million shares at the end of the year. During the year investors have received income distributions of $3 per share and capital gain distributions of $0.20 per share. Assuming that the fund carries no debt, and that the total expense ratio is 2%, what is the rate of return on the fund? Multiple Choice 16.95% 17.80% 26.45% The answer cannot be determined from the information given.

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