Question 3 A good stock-based mutual fund should earn at least 10% per year over a long period of time. Consider the case of Qies and Moneeb, who were overheard gloating (for all to hear) about how will they had done with their mutual fund investment. "We turned a 25,000S investment of money in 1982 into 100,000S in 2007". - What return (interest rate) did they really earn on their investment?

Question 3 A good stock-based mutual fund should earn at least 10% per year over a long period of time. Consider the case of Qies and Moneeb, who were overheard gloating (for all to hear) about how will they had done with their mutual fund investment. "We turned a 25,000S investment of money in 1982 into 100,000S in 2007". - What return (interest rate) did they really earn on their investment?

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

See similar textbooks

Similar questions

An investor has $80,000 to invest in a CD and a mutual fund. The CD yields 8% and the mutual fund yields 7%. The mutual fund requires a minimum investment of $9,000, and the investor requires that at least twice as much should be invested in CDs as in the mutual fund. How much should be invested in CDs and how much in the mutual fund to maximize the return? What is the maximum return? To maximize income, the investor should place $ in CDs and $ in the mutual fund. (Round to the nearest dollar as needed.)
Dont uplode image in answer, USE BAII Plus Financial Calculator to solve the TVM questions. $_____________You would like to start saving for retirement. Assuming you are now 22 years old and you want to retire at age 60, you have 38 years to watch your investment grow. You decide to invest in the stock market, which you expect it to earn about 6% per year into the future. You decide to invest $600 at the end of each month for the next 38 years (456 months). Calculate your accumulated investment at the end of 38 years. (Round to nearest whole dollar)
The book I use for study: Principles of Managerial Finance [Global Edition] 16th Edition. Chad J. Zutter & Scott B. Smart Questions in image
(Security market line) Your father just learned from his financial advisor that his retirement portfolio has a beta of 1.83. He has turned to you to explain to him what this means. Specifically, describe what you would expect to happen to the value of his retirement fund if the following were to occur: a. The value of the market portfolio rises by 10 percent. b. The value of the market portfolio drops by 10 percent. c. Is your father's retirement portfolio more or less risky than the market portfolio? Explain. a. If the value of the market portfolio rises by 10%, then the value of your father's retirement fund should by%. (Select from the drop-down menu and round the answer to two decimal places.) decrease increase
Mutual funds can be classified basing on execution and operations or basing on yield and investment pattern, briefly describe the classification of mutual funds from these two basis 28. With examples, briefly discuss the importance of mutual funds to an economy 29. Akiba Unit Trust Fund has a prospective average annual return of 8% over the next 20 years. Estimate the value of a Tshs 20,000,000 investment after 20 years when the returns are i. Tax-free, (3 Marks) ii. Subject to a deferred tax of 30% iii. Subject to an annual tax of 25% 30. Briefly analyze the difference between defined benefit plan and defined contribution plan as applied in the pension funds 31. Mr Domokaya works as Director of finance in TPL Ltd a publicly owned institution where He earns a salary of Tshs 6,000,000 per month. Mr Domokaya expects to hold that position for the next 40 years before retirements. After retirement, Mr Domokaya expects to live for further 30 years. Mr Domokaya wishes to…
man.2
Y8
An investor has $80,000 to invest in Certificates of Deposit (CD) and a mutual fund. The CD yields 7% and the mutual fund yields 8%. The mutual fund requires a minimum investment of $8,000 and the investor requires at least twice as much should be invested in CDs as in the mutual fund. How much should be invested in each to maximize the return? What is the maximum return? Show your work and explanations setting this problem up. Variables should clearly be defined. Show all your work.
man.2

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS