Required: A hedge fund with $1.8 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money marke rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.) Portfolio Rate of Return (%) a. -1 b. 0 c. 6 d. 12 Total Fee ($ million) Total Fee (%)

Required: A hedge fund with $1.8 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money marke rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.) Portfolio Rate of Return (%) a. -1 b. 0 c. 6 d. 12 Total Fee ($ million) Total Fee (%)

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

еВook Problem Walk-Through Suppose you are the money manager of a $3.84 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 320,000 1.50 B 700,000 (0.50) 1,120,000 1.25 D 1,700,000 0.75 If the market's required rate of return is 9% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %
Required: A hedge fund with $1.7 billion of assets charges a management fee of 2% and an incentive fee of 20% of returns over a money market rate, which currently is 5%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of (Enter your answers in millions rounded to 1 decimal place.) Answer is complete but not entirely correct. Portfolio Rate of Return (%) b.0 c. 5 d. 10 Total Fee ($ million) 34,000,000.0 34,000,000.0 34,000,000.0 51,000,000.0 Total Fee (%) 2.0 WNNN oooo 2.0 2.0 3.0 ››
Assume that the fund is liquidated at the end of the fourth quarter, what are the arithmetic, time-weighted (geometric), and dollar-weighted average rates of return? 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Assets Under Managment at start of quarter ($ milion) 10 12.5 21.25 9 Holding-period return (%) 15% 30% -20% 25% Total assets before net inflows 11.5 16.25 17 11.25 Net inflow ($ million) 1 5 -8 6 Assets under managment at end of quarter ($ million) 12.5 21.25 9 17.25
Hi expert please answer same as required to put in the boxes making Same table
The following mutual fund investment earns monthly returns that are reinvested and subsequently earn at the same rate. Find (a) the beginning value of the investment, (b) the first monthly return, and (c) the effective annual rate of return. (a) The beginning value of the investment is $ (b) The first monthly return is $ (Round to the nearest cent.) L Beginning NAV Number of Shares Purchased Monthly Percentage Return $12.72 350 1.71% CH
B. At time 0, K is deposited into Fund X, which accumulates at a force of interest of t + 3 t² + 6t+9 8₁ At time m, 2K is deposited into Fund Y, which accumulates at an interest of 10.25%, convertible quarterly. At time n, where n > m, the accumulated value of each fund is 3K. Calculate m.
Suppose that an investor has a chance of investing 90% fund in A with the remainder 10% purchasing shares in B. The returns on these companies respond differently to the general activity within the economy. Calculate the expected returns and standard deviation for this two-asset profolio. Event i State of thye economy Probability Pi Return on A RA Return on B RB Boom 0.3 20% 3% Growth 0.4 10% 35% Recession 0.3 0% -5%
D4) Finance Consider a portfolio composed of shares AAA and BBB as shown in the following table. At 95% confidence level, select the correct statement AAA BBB Value 2,470,000 785,750 % investment 76% 24% Volatilities 2.32 % 2.69 % Correlation for both assets 0.65 Portfolio Value for both assets 3,255,750 a) The Component VaR of the Asset AAA is 92,223 and the component VaR of the Asset BBB is 27955.69 b) The contribution to the VaR of the Asset AAA is 77% and the one of the Asset 2 is 23% c) Both answers are correct
1. An investor has an opportunity to purchase any of the investments shown in the following table. Which purchase recommendations would you make, assuming that the investor can earn 10% on his investments? stream of cash number of years flows per year A 1 000 10 B 1 200 8. 900 11
Question content area top Part 1 (Capital asset pricing model) Anita, Inc. is considering the following investments. The current rate on Treasury bills is 7 percent, and the expected return for the market is 12.5 percent. Using the CAPM, what rates of return should Anita require for each individual security? Stock Beta H 0.71 T 1.62 P 0.89 W 1.37 (Click on the icon in order to copy its contents into a spreadsheet.) Question content area bottom Part 1 a. The expected rate of return for security H, which has a beta of 0.71, is enter your response here%. (Round to two decimal places.) Part 2 b. The expected rate of return for security T, which has a beta of 1.62, is enter your response here%. (Round to two decimal places.) Part 3 c. The expected rate of return for security P, which has a beta of 0.89, is enter your response here%. (Round to two decimal places.) Part 4 d. The expected rate of return for…
4. Problem 8.07 (Portfolio Required Return) еВook Problem Walk-Through Suppose you are the money manager of a $4.04 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 220,000 1.50 B 800,000 (0.50) 1,020,000 1.25 D 2,000,000 0.75 If the market's required rate of return is 8% and the risk-free rate is 5%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %
cash flows from these three investments are as follows: Investment B $ 2.000 $1,000 3.000 1,000 4.000 1.000 (5,000) 1,000 16 5.000 3.000 (Click on the con in order to copy its contents into a spreadsheet What is the present value of each of these three investments if the appropriate discount rate is 15 percent? End of Year 23 JEED $ 6,000 6.000 (6.000) (6.000) 16.000 a. What is the present value of investment A at an annual discount rate of 15 percent? (Round to the nearest cent

SEE MORE QUESTIONS

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