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

See similar textbooks

Similar questions

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: %
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…
Consider a mutual fund with $200 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 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%, which are deducted from portfolio assets at year-end. What is the fund’s net asset value at the start and end of the year? What is the rate of return for an investor in the fund?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS