Devon invested $10,500 in three different mutual funds. A fund containing large cap stocks made a 8.3% return in 1 yr. A real estate fund lost 13.4% in 1 yr, and a bond fund made 3.4% in 1 yr. The amount invested in the large cap stock fund was three times the amount invested in the real estate fund. If Devon had a net return of $315 across all investments, how much did he invest in each fund? Devon invested S in the large cap fund, S in the real estate fund, and S in the bond fund. X 3

Devon invested $10,500 in three different mutual funds. A fund containing large cap stocks made a 8.3% return in 1 yr. A real estate fund lost 13.4% in 1 yr, and a bond fund made 3.4% in 1 yr. The amount invested in the large cap stock fund was three times the amount invested in the real estate fund. If Devon had a net return of $315 across all investments, how much did he invest in each fund? Devon invested S in the large cap fund, S in the real estate fund, and S in the bond fund. X 3

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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You purchased 1,000 shares of a mutual fund at an offer price of $13.88 per share. Several months later you sold the shares for $14.62 per share. During the time you owned the shares, the fund paid a dividend of $0.63 per share. What was your return on investment? Round to the nearest tenth %
A year and half ago, Max purchased 5,000 shares in a mutual fund called Epic Inc. for $15.75/share. Due to COVID-19, the stock was an epic failure and Max decided to sell 3,000 shares on November 30, 2021, when the share price was at $9.55/share. His investment broker counselled him not to sell as the fund was a back-end loaded fund. Year funds are redeemed/sold Deferred sales charge Within the first year 6% In the second year 5% In the third year 4% In the fourth year 3% In the fifth year 2% In the sixth year 1% After the sixth year 0% a) What is the amount that Max will receive for the sale of these shares (ignore income taxes)?| Calculate the amount that Max will receive: b) Knowing that capital losses are applied against capital gains, what would be the overall taxes payable if Max sold shares in another company called Save The Day Inc. which resulted in a capital gain in 2021 of $50,000 and the shares in point a)? Max is a resident of Quebec and in the highest tax bracket. See…
Analysts' estimates on expected returns from equity investments are based on several factors. These estimations also often include subjective and judgmental factors, because different analysts interpret data in different ways Suppose, based on the earnings consensus of stock analysts, Gregory expects a return of 13.54% from the portfolio with the new weights. Does he think that the required return as compared to expected returns is undervalued, overvalued, or fairly valued? O Undervalued Overvalued O Fairly valued Suppose instead of replacing Atteric Inc.'s stock with Baque Co.'s stock, Gregory considers replacing Atteric Inc.'s stock with the equal dollar allocation to shares of Company X's stock that has a higher beta than Atteric Inc. If everything else remains constant, the required return from the portfolio would increase
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Investor Matt has $661,000 to invest in a CD and a mutual fund. The CD yields 7.3% and the mutual fund yields an average of 7.7%. The mutual fund requires a minimum investment of $20,000, and Matt requires that at least 4 times as much money be invested in the CD as in the mutual fund. You must invest in order to maximize his return. What is the maximum return? Enter 0 if no investment can be made satisfying the requirements. $ . Round to the nearest cent.
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