A pension fund manager is considering three mutual funds. The first is a stock fund, the second isa long-term government and corporate bond fund, and the third is a T-bill money market fund thatyields a sure rate of 5.5%. The probability distributions of the risky funds are:Stock fund (5)Expected Return16%10%Bond fund (B)The correlation between the fund returns is 0.10.Standard Deviation38%29%Problem 6-11 (Algo)Suppose now that your portfollo must yield an expected return of 13% and be efficient, that is, on the best feasibleCAL.Required:a. What is the standard deviation of your portfollo? (Do not round Intermediate calculations. Round your answer2 decimal places.)Standard deviation%ماb-1. What is the proportion Invested in the T-bill fund? (Do not round Intermedlate calculations. Round your ansto 2 decimal places.)Proportion invested in the T-bill fund%b-2. What is the proportion Invested in each of the two risky funds? (Do not round Intermediate calculations.Round your answers to 2 decimal places.)Proportion InvestedStocks%Bonds%

The standard deviation can be used to calculate how dispersed a set of numbers is. It is minimal…

a. What is the standard deviation of your portfollo? (Do not round Intermediate calculations. Round your answ 2 decimal places.) Standard deviation % B b-1. What is the proportion Invested in the T-bill fund? (Do not round Intermediate calculations. Round your ar to 2 decimal places.) Proportion invested in the T-bill fund % b-2. What is the proportion Invested in each of the two risky funds? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Proportion Invested Stocks Bonds % %

a. What is the standard deviation of your portfollo? (Do not round Intermediate calculations. Round your answ 2 decimal places.) Standard deviation % B b-1. What is the proportion Invested in the T-bill fund? (Do not round Intermediate calculations. Round your ar to 2 decimal places.) Proportion invested in the T-bill fund % b-2. What is the proportion Invested in each of the two risky funds? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Proportion Invested Stocks Bonds % %

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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A mutual fund that invest in a mix of equity and fixed income securities that provide current cash flow is a(n)
Choose minimum of 5 ETFs or index funds. Justify your selection, apply the same analysis and rationale as above. But you are limited to trade only ETFs and index funds in this part. Note, your ETF choices must be traded on an exchange with daily prices, some investment funds available from banks do not belong to this category.
this is a finance question. the arithmetic average is not going to be the total sum divided by n ( ex:2546/8) if you can't answer it, please just reject the question
Solve the problems listed below. Show your solution and box the final answer. (bond or yellow paper) 1. A fund is set up to charge a load. Its net asset value is P16.50 and its offer price is P17.30. A. How much is the commission of the load? B. What percentage of the offer price does the commission represent? C. What percentage of the net asset value does the commission represent? D. Assume the fund increased in value by .30 the first month after you purchased 100 shares. What is the total gain or loss? Compare the total current value with the total purchase amount. E. By what percentage would the net asset value of the shares have to increase for you to break even? 2. Under peso-cost averaging, an investor will purchase P6,000 worth of stock each year for three years. The stock price is P40 in year 1, P30 in year 2 and P48 in year 3. A. What is the share purchased in every year? B. Compute the average price per share. C. Compute the average cost per share. 3. Under peso-cost…
Investor has had the following returns in the Magic Fund for the past 4 years: 15%, 25%, -30%, 18%. c) State whether the annual geometric return (assume positive) should be higher, lower, or the same as the annual arithmetic return. Neither calculation nor explanation is necessary. d) State which measure, annual arithmetic return or annual geometric return, better represents how an investment performed over time. Neither calculation nor explanation is necessary.
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Activity 3 You are given the following information on three funds. The risk free rate is 6%. Calculate the differential return measure. Interpret your findings. Fund CH- G I Actual Return 15 25 30 Market Return 20 20 20 Sigma² 16 25 36
a. Using the data in the table below and calculate the following performance measures
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Please do it correctly will upvote in 30 minutes
You are considering investing in one of several mutual funds. All the funds under consideration have various combinations of front-end and back-end loads and/or 12b-1 fees. The longer you plan on remaining in the fund you choose, the more likely you will prefer a fund with a rather than (a)__ everything else equal. a) 12b-1 fee; back-end load b) front-end load; 12b-1 fee c) 12b-1 fee; front-end load d) front-end load; back-end load e) 12b-1 fee; no load charge

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