A year ago, an investor bought 600 shares of a mutual fund at $7.64 per share. This year, the fund has paid dividends of $0.72 per share and had a capital gains distribution of $0.54 per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.23. b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $7.86 per share a. Given that this no-load fund now has a net asset value of $8.23, the investor's holding period return is (Round to two decimal places)

A year ago, an investor bought 600 shares of a mutual fund at $7.64 per share. This year, the fund has paid dividends of $0.72 per share and had a capital gains distribution of $0.54 per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.23. b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $7.86 per share a. Given that this no-load fund now has a net asset value of $8.23, the investor's holding period return is (Round to two decimal places)

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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Suppose you are the money manager of a $3.92 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 200,000 1.50 B 620,000 (0.50) C 900,000 1.25 D 2,200,000 0.75 If the market's required rate of return is 9% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
If an investor buys shares in a no-load mutual fund for $33 and after eight years the shares appreciate to $60, what is (1) the percentage return and (2) the annual compound rate of return using time value of money? Round your answers to two decimal places. Percentage return: % The annual compound rate of return: %
Last year, Melissa purchased a closed-end mutual fund that was trading at $33 and had a NAV of $30. She sold the fund today at the market price is $38 when the NAV is $39. The fund paid $1 in dividends over the past year. What is the her holding period return? 13.54% 18.18% 15.15% 12.82%
During the past 10 years, the percent returns on two mutual funds (aggressive and passive) expressed in percentages were as follows: Year -10 -9 -8 -7 -6 -5 -4 -3 -2 Last Year Aggressive Fund 0% 6% 1% 2% 8% 1% 5% 1% 1% 5% Note that this is a sample of returns. a) Compute the expected return for the two funds. Round your answers to two decimal places. Aggressive = Number Passive = Number b) Compute the variance and standard deviation of the returns of the two funds. Round your answers to two decimal places. Variance: Aggressive = Number Passive = Number Standard Deviation: Aggressive = Number Passive = Number Passive Fund 4% 4% 4% 3% 4% 2% 2% 3% 4% 2% % %
K You invested in the no load Best Mutual Fund one year ago by purchasing 1,000 shares of the fund at the net asset value of $1868 per share. The fand distributed dividends of $2.04 and capital gains of $1.91 Today, the NAV is $20 19 1 Best was a load fund with a 3% bont end load, what would be the HPR? Your holding period return would be (Round to two decimal places)
You are considering investing in a mutual fund. The fund is expected to earn a return of 19.0 percent in the next year. If its annual return is normally distributed with a standard deviation of 10.3 percent, what return can you expect the fund to beat 95 percent of the time?
Twelve months ago, you purchased the shares of a no-load mutual fund for $22.05 per share. The fund distributed cash dividends of $0.70 and capital gains of $1.30 per share. If the net asset value of the fund is currently $24.45, what was your annual return on the investment? Round your answer to two decimal places. % If the value of the shares had been $21.14, what would have been your annual return? Round your answer to two decimal places. %
Five years ago, you invested in the Future Investco Mutual Fund by purchasing 1,300shares of the fund at the price of $17.44 per share. Because you did not need the income, you elected to reinvest all dividends and capital gains distributions. Today, you sell your 1,550 shares in this fund for $21.78 per share. If there were a 3% load on this fund, what would your rate of return be?
Consider a mutual fund with $200 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 12%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 1%, which are deducted from portfolio assets at year-end. What is the rate of return for an investor in the fund? 12.88% 30.88% 13.00% 31.00%
If an investor buys shares in a no-load mutual fund for $30 and after five years the shares appreciate to $56, what is (1) the percentage return and (2) the annual compound rate of return using time value of money?
Consider a mutual fund with $250 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2.2 million. The stocks included in the fund's portfolio increase in price by 6%, 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. a. What is the fund's net asset value at the start and end of the year? (Round "End of the year" to 3 decimal places.) b. What is the rate of return for an investor in the fund? (Round your intermediate calculations to 3 decimal places and final answer to 2 decimal places.)
The Damon Investment Company manages a mutual fund composed mostly of speculative stocks. You recentlysaw an ad claiming that investments in the funds have been earning a rate of return of 21%. This rate seemedquite high so you called a friend who works for one of Damon’s competitors. The friend told you that the21% return figure was determined by dividing the two-year appreciation on investments in the fund by theaverage investment. In other words, $100 invested in the fund two years ago would have grown to $121 ($21 ÷$100 = 21%).Required:Discuss the ethics of the 21% return claim made by the Damon Investment Company.Sally Hamilton has performed well as the chief financial officer of the Maxtech Computer Company and hasearned a bonus. She has a choice among the following three bonus plans:1. A $50,000 cash bonus paid now.2. A $10,000 annual cash bonus to be paid each year over the next six years, with the first $10,000 paid now.3. A three-year $22,000 annual cash bonus with the first…

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