Problem 4-7 Front-End Load (LO2) An open-end mutual fund has the following stocks: Stock Shares Stock Price A 14,000 31,000 4,500 84,000 B C D $82 26 61 14 The fund has 56,000 shares and liabilities of $142,000. Assume the fund is sold with a front-end load of 3.25 percent. What is the offering price of the fund? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Offering price

Problem 4-7 Front-End Load (LO2) An open-end mutual fund has the following stocks: Stock Shares Stock Price A 14,000 31,000 4,500 84,000 B C D $82 26 61 14 The fund has 56,000 shares and liabilities of $142,000. Assume the fund is sold with a front-end load of 3.25 percent. What is the offering price of the fund? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Offering price

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 4-14 (Algo) The composition of the Fingroup Fund portfolio is as follows: Stock A 11 C D Shares 240,000 340,000 440,000 640,000 Turnover rato Price $ 30 35 10 15 Required: If during the year the portfolio manager sells all of the holdings of stock D and replaces it with 240,000 shares of stock E at $30 per share and 240,000 shares of stock F at $10 per share, what is the portfolio turnover rate? (Round your answer to 2 decimal places.)
Required information [The following information applies to the questions displayed below.] A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Expected Return Standard Deviation 17% 11% 38% 29% Stock fund (S) Bond fund (B) The correlation between the fund returns is 0.25. Required: What is the Sharpe ratio of the best feasible CAL? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Sharpe ratio
A 192.B is wrong
None
son.4
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.)
Here are the NAVS for a no-load mutual fund that paid no distributions: April 2 NAV=$11.5 Apr 3 NAV=$12.5 Apr 4 NAV=$12.1 Apr 5 NAV=$13.5 What is your return if you buy the fund on April 2 at 10am and sell it on Apr 4 at 5pm? 17.39% 5.22% 8% -3.2%
man.2
Jk. 203.
Y8
Required information [The following information applies to the questions displayed below.] A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Expected Return 17% 11% Standard Deviation 38% 29% Stock fund (5) Bond fund (B) The correlation between the fund returns is 0.25. Required: What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return Standard deviation % %

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