IncorrectQuestion 160 / 1 ptsBest Invest seeks to allocate $10,000 between three funds A, B, andC. Best Invest's goal is to achieve an expected portfolio return of10% at the lowest possible risk level. Best Invest has ten quarters ofannualized performance data on the three funds that are shownbelow and provided in the Excel workbook for this quiz.QuarterFund AFund BFund C19.90%5.00%8.70%28.90%7.70%20.50%310.10%5.10%36.40%42.00%17.00%-13.30%53.00%5.90%11.40%67.10%11.50%-9.00%75.30%18.00%5.20%810.40%12.50%47.20%910.50%19.00%-3.40%106.80%12.50%17.60%Which of the following statements are true regarding funds A, B, andC?(Note: Round answers to two significant digits except for covariancevalues which are rounded to 5 significant digits.)The 10-quarter average performance for fund A is 7.40%.The 10-quarter standard deviation in performance for fund B is5.37%.The 10-quarter covariance in performance between funds A and C is0.00316The 10-quarter correlation in performance between funds B and C is0.45Exactly two answers are correct.Exactly three answers are correct.

The 10-quarter average performance for fund A is 7.40% We can calculate the average return for fund…

Answered: Incorrect Question 16 0 / 1 pts Best…

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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Problem 23-1 An institutional investor is comparing management fees for two competing real estate investment funds. Both funds expect to begin operations and are accepting capital commitments. When the funds begin acquiring properties, capital calls will be made for capital contributions during the investment period. Fund A will charge a fee of 45 BP on capital committed and 60 BP on capital invested after the investment period ends. Fund B will charge a fee of 50 BP on capital committed and 55 BP on capital invested after the investment period ends. Both funds expect to have $500,000,000 in capital commitments when the fund commences operations and both project a five-year cycle for startup and acquisitions. Capital flows are expected as follows: Fund A Year 1 Year 2 Year 3 Year 4 Year 5 Fund B Year 1 Year 2 Year 3 Year 4 Year 5 Contributed Capital $ 200,000,000 300,000,000 Contributed Capital $ 300,000,000 200,000,000 Capital Returned $0 0 0 100,000,000 50,000,000 Capital Returned $0…
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Question A Franklin’s investment fund had a balance of $290,000 on January 1, 1995 and a balance of $448,000 two years later. The amount of interest earned during the two years was $34,000, and the annual yield rate on the fund was 5.4%. Estimate the (dollar-weighted) average date of contributions to the account. Answer: September 26, 1996 Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line
Problem 22-10 The financial manager has determined the following schedules for the cost of funds: Cost of Debt Debt ratio 0% 10 20 30 40 50 60 Assets 4 4 $400 Assets 4 4 5 a. Determine the firm's optimal capital structure. Round your answer to two decimal places. The optimal capital structure consists of -Select- % debt resulting in the cost of capital equal to 7 b. Construct a simple pro forma balance sheet that shows the firm's optimal combination of debt and equity for its current level of assets. Round your answers to the nearest dollar.. Balance Sheet Cost of Equity 11%) 11 11 11 12 13 14 Debt Equity %. $ 400 c. An investment costs $500 and offers annual cash inflows of $186 for four years. Should the firm make the investment? Use Appendix D to answer the question. Round your answer to the nearest whole number.. The Investment -Select- be made since the internal rate of return that is % -Select- o the cost of capital. d. If the firm makes this additional investment, how should its…
Problem 17-06 The Global Growth Fund is a load fund with a 5 percent front load fee. It started the year with a net asset value (NAV) of $16.00. During the year the fund distributed $1.25, and at the end of the year its NAV was $17.55. What was the fund's return, and what was an investor's return? Round your answers to two decimal places. The fund's return: 17.50 purchase price % Return on the individual's investment: Why are they different? The answers are different because the fund reports its return based on the net asset value ✓ % and the investrors calculate their return based on the
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Problem 7-8 A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 4%. The characteristics of the risky funds are as follows: Stock fund (S) Bond fund (B) Expected Return 23% 14 Standard Deviation The correlation between the fund returns is 0.12. Sharpe ratio 29% 17 What is the Sharpe ratio of the best feasible CAL? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 places.) Check my work
INV 1 6f You have decided to invest in three mutual funds: one in equities, one in long corporate and government bonds, and a money market fund invested in T-bills yielding 5%. Your estimate of the relevant parameters for the equities and bond funds are as follows: Expected Return Standard Deviation Equities .15 .30 Bonds .06 .09 The correlation between the fund returns is 0.12. Compare the portfolios in #4 and #5. Is this consistent with what you would expect when adding the T-bill money market fund as essentially the risk-free asset?
9
Problem 6-6 (Algo) Consider the following table: Scenario Probability Stock Fund Rate of Return Bond Fund Rate of Return Severe recession 0.10 -44% -11% Mild recession 0.20 -24% 17% Normal growth 0.40 29% 10% Boom 0.30 34% -7% Required: a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return" value to 1 decimal place and "Variance" to 2 decimal places.) b. Calculate the value of the covariance between the stock and bond funds. (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Question 8 Over the first 9 months of 2021, FNBA performed extremely well versus BAA regarding Yield on earning assets O Non-interest income Cost of funding earning assets

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