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 -8 -7 -6 -5 -4 -3 -2 Last Year Aggressive Fund 10% 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% % %

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 -8 -7 -6 -5 -4 -3 -2 Last Year Aggressive Fund 10% 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% % %

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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Use this info to answer question 10, please don't answer 8: Use the following information to answer questions 8-10. In a particular year, the Pontipines Fund earned a return of 1% by making the following investments in asset classes: The return on a bogey portfolio was 2%, calculated from the following information: The total abnormal return on the Pontipines Fund's managed portfolio was: A) - 1.80% B) -1.00% C) 0.80% D ) 1.00% 10) The contribution of selection within markets to the Pontipines Fund's total abnormal return was: A) -1.80% B ) -1.00% C) 0.80% D) 1.00%
If a mutual fund's net asset value is $23.30 and the fund sells its shares for $25.00, what is the load fee as a percentage of the net asset value? Round your answer to two decimal places.....%
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) Mutual Fund $ Rate of Return Fidelity Growth Company 14.83% Vanguard 500 Index 13.25% PIMCO Total Return Stock fund 2.77% Type Stock fund For the past 15 years you have been depositing $600 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $600 per month until you retire in 20 years. How much can you anticipate having in the investment when you retire? HINT [See Example 1.] (Round your answer to the nearest cent.) Vanguard Total Bond Market Index Bond fund 2.67% Bond fund
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) Mutual Fund Fidelity Growth Company Vanguard Vanguard PIMCO 500 Index Total Return Total Bond Market Index Rate of Return 15.83% 14.25% 3.77% 3.67% Type Stock fund Stock fund Bond fund Bond fund For the past 25 years you have been depositing $500 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $500 per month until you retire in 30 years. How much can you anticipate having in the investment when you retire? HINT [See Example 1.] (Round your answer to the nearest cent.) $
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) Mutual Fund Fidelity Growth Vanguard PIMCO 500 Index Total Return Company Vanguard Total Bond Market Index Rate of Return 15.83% 13.25% 2.77% 3.67% Туре Stock fund Stock fund Bond fund Bond fund You wish to establish a trust fund from which your heirs can withdraw $10,000 per month for 20 years, at the end of which time they will receive $20,000. How large should the trust be if invested in the Fidelity stock fund? HINT [See Example 3.] (Round your answer to the nearest cent.) $
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) MutualFund FidelityGrowthCompany Vanguard500 Index PIMCOTotal Return VanguardTotal BondMarket Index Rate ofReturn 15.83% 14.25% 3.77% 3.67% Type Stock fund Stock fund Bond fund Bond fund For the past 25 years you have been depositing $600 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $600 per month until you retire in 30 years. How much can you anticipate having in the investment when you retire? HINT [See Example 1.] (Round your answer to the nearest cent.)
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) MutualFund Fidelity Growth Company Vanguard 500 Index PIMCO Total Return Vanguard Total Bond Market Index Rate ofReturn 15.83% 14.25% 3.77% 3.67% Type Stock fund Stock fund Bond fund Bond fund For the past 15 years you have been depositing $300 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $300 per month until you retire in 20 years. How much can you anticipate having in the investment when you retire? HINT [See Example 1.] (Round your answer to the nearest cent.) $
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) MutualFund FidelityGrowthCompany Vanguard500 Index PIMCOTotal Return VanguardTotal BondMarket Index Rate ofReturn 15.83% 14.25% 3.77% 3.67% Type Stock fund Stock fund Bond fund Bond fund For the past 15 years you have been depositing $400 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $400 per month until you retire in 20 years. How much can you anticipate having in the investment when you retire? HINT [See Example 1.] (Round your answer to the nearest cent.) $
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) MutualFund FidelityGrowthCompany Vanguard500 Index PIMCOTotal Return VanguardTotal BondMarket Index Rate ofReturn 14.83% 14.25% 2.77% 2.67% Type Stock fund Stock fund Bond fund Bond fund How much would be accumulated after 35 years in a retirement account invested entirely in the Vanguard stock fund with payments of $340 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.)
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)
J.P. Morgan Asset Management publishes information about financial investments. Overthe past 10 years, the expected return for the S&P 500 was 5.04% with a standard deviation of 19.45% and the expected return over that same period for a core bonds fund was5.78% with a standard deviation of 2.13% (J.P. Morgan asset Management, guide to theMarkets, 1st quarter, 2012). The publication also reported that the correlation betweenthe S&P 500 and core bonds is −.32. You are considering portfolio investments that arecomposed of an S&P 500 index fund and a core bonds fund.a. Using the information provided, determine the covariance between the S&P 500 andcore bonds.b. Construct a portfolio that is 50% invested in an S&P 500 index fund and 50% in a corebonds fund. In percentage terms, what are the expected return and standard deviationfor such a portfolio?c. Construct a portfolio that is 20% invested in an S&P 500 index fund and 80% investedin a core bonds fund. In…
A stock Fund produced the following annualized results: Return = 17.5% Std Dev= 22% Beta = 1.05 Tracking Error vs. S&P 500: 3.2% (annualized) Over the same period, T-Bills returned 5%; the S&P returned 15% and had a std Dev = 25 The Fund's Information Ratio adjusted for beta is: O 0.781 O 0.625 O 0.568 O 0.60 O 1.055

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