A year ago, an investor bought 200 shares of a mutual fund at $9.50 per share. Over the past year, the fund has paid dividends of $0.80 per share and had a capital gains distribution of $0.50 per share. Find the investor's holding period return, given that this no-load fund now has a net asset value of $10.70. Select one: O a. 2.63% O b. 2.34% O c. 26.32% O d. 23.36%

A year ago, an investor bought 200 shares of a mutual fund at $9.50 per share. Over the past year, the fund has paid dividends of $0.80 per share and had a capital gains distribution of $0.50 per share. Find the investor's holding period return, given that this no-load fund now has a net asset value of $10.70. Select one: O a. 2.63% O b. 2.34% O c. 26.32% O d. 23.36%

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 following mutual fund investment earns monthly returns that are reinvested and subsequently earn at the same rate. Find (a) the beginning value of the investment, (b) the first monthly return, and (c) the effective annual rate of return. (a) The beginning value of the investment is $ (b) The first monthly return is $ (Round to the nearest cent.) L Beginning NAV Number of Shares Purchased Monthly Percentage Return $12.72 350 1.71% CH
You invested $90,000 in a mutual fund at the beginning of the year when the NAV was $54.3. At the end of the year, the fund paid $.40 in short-term distributions and $.57 in long-term distributions. If the NAV of the fund at the end of the year was $63.94, what was your return for the year? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
A no-load fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.8%. Assumes the securities in which the fund invests increase in value by 6.54% per year. If you invested $1,000, how much will your fund shares be worth after 5 years? a. $1260.56 b. $1263.57 c. $1195.33 d. $1300.53
None
About a year ago, Eric Robertson bought some shares in the Diamond Mountain Mutual Fund. He bought the fund at $25.50 a share, and it now trades at $26.30. Last year, the fund paid dividends of $0.72 a share and had capital gains distributions of $2.50 a share. Assume that the mutual fund distributed the dividends and capital gains at the end of the year. Using the approximate yield formula, what rate of return did Eric earn on his investment? Round the answer to two decimal places. % Repeat the calculation using a handheld financial calculator. Round the answer to two decimal places. % What rate of return would he have earned if the stock had risen to $30 a share? Round the answer to two decimal places. %
You invested in the no-load Best Mutual Fund one year ago by purchasing 900 shares of the fund at the net asset value of $18.58 per share. The fund distributed dividends of $1.95 and capital gains of $1.98. Today, the NAV is $19.90. If Best was a load fund with a 3% front-end load, what would be the HPR?
Suppose that at the start of the year, no-load mutual fund has a net asset value of $27.65 per share. During the year, it pays its shareholders a capital gain and dividend distribution of $1.18 per share and finishes the year with an NAV of $30.84. a. What is the return to an investor who holds 257.616 shares of this fund in his (nontaxable) retirement account? Do not round intermediate calculations. Round your answer to two decimal places. % b. What is the after-tax return for the same investor these shares were held in an ordinary savings account? Assume that the investor is in the 30% tax bracket, Do not round intermediate calculations. Round your answer to two decimal places. % c. If the investment company allowed the investor to automatically reinvest his cash distribution in additional fund shares, how many additional shares could the investor acquire? Assume that the distribution occurred at year end and that the proceeds from the distribution can be reinvested at the year-end…
A mutual fund has $246 million dollars in assets, 27 million shares outstanding, and a total expense ratio of 0.5 percent. If during the past year the fund has bought and sold $105 million worth of assets, what is the fund's turnover rate? Enter answer in percents, accurate to two decimal places.
A year ago, the Very Large Growth Fund was being quoted at an NAV of $20.86 and an offer price of $21.73. Today, it's being quoted at $22.53 (NAV) and $23.47 (offer). What is the holding period return on this load fund, given that it was purchased a year ago and that its dividends and capital gains distributions over the year have totaled $0.96 per share? Assume that none of the dividends and capital gains distributions are reinvested into the fund. (Hint: You, as an investor, buy fund shares at the offer price and sell at the NAV.)
Louis Hall read in the paper that Fidelity Growth Fund has an NAV of $16.02. He called Fidelity and asked how the NAV was calculated. Fidelity gave him the following information: Current market value of fund investment Current liabilities Number of shares outstanding Did Fidelity provide Louis with the correct information? Yes No Saved $ 8,550,000 $ 860,000 480,000
Suppose you are the money manager of a $5.08 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta $ 440,000 A B C D 0.75 If the market's required rate of return is 10% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. 500,000 1,140,000 3,000,000 1.50 (0.50 ) 1.25
A mutual fund has total assets of $39,333,444 and liabilities of $6,753,789. If there are 11,521,000 sharesoutstanding, what is the net asset value of the fund? $3.02 $3.85 $2.83 $2.16

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