Suppose a man invested $250 at the end of 1900 in each of three funds that tracked theaverages of stocks, bonds, and cash, respectively. Assuming that his investments grew at therates given in the table to the right, approximately how much would each investment have beenworth at the end of 2012?CategoryAverage Annual ReturnStocks6.6%Bonds2.1%Cash0.6%His investment in the fund tracking stocks would be worth approximately $(Do not round until the final answer. Then round to two decimal places as needed.)His investment in the fund tracking bonds would be worth approximately $(Do not round until the final answer. Then round to two decimal places as needed.)His investment in the fund tracking cash would be worth approximately $(Do not round until the final answer. Then round to two decimal places as needed.)

The return on each fund will be calculated using the FV formula assuming the returns are compounded.…

Answered: Suppose a man invested $250 at the end…

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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You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B, have the following historical returns: Year TA TB 2017 -17.00% -8.00% 2018 34.00 14.00 2019 29.00 -18.00 2020 -5.00 55.00 2021 21.00 19.00 a. Calculate the average rate of return for each stock during the 5-year period. Do not round intermediate calculations. Round your answers to two decimal places. Stock A: 12.40 % Stock B: 12.40 b. Suppose you had held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Do not round intermediate calculations. Round your answers to two decimal places. Negative values, if any, should be indicated by a minus sign.
Suppose a man invested $300 at the end of 1900 in each of three unds that tracked the averages of stocks, bonds, and cash, espectively. Assuming that his investments grew at the rates iven in the table to the right, approximately how much would each vestment have been worth at the end of 2007? Category Stocks Bonds Cash is investment in the fund tracking stocks would be worth approximately $ Do not round until the final answer. Then round to two decimal places as needed.) Average Annual Returni 6.2% 2.1% 0.8%
1. Your portfolio had the values in the table below for the four years listed. There were no withdrawals or contributions of new funds to the portfolio. Calculate your average return over the 4-year period. (Click on the icon here contents of the data table below into a spreadsheet.) in order to copy its Beginning Value Ending Value 2016 $60,827 $55,697 2017 55,697 64,666 2018 64,666 68,386 2019 68,386 70,124 Review Only Click the icon to see the Worked Solution. The return for 2016 is %. (Round to one decimal place.) The return for 2017 is %. (Round to one decimal place.) The return for 2018 is %. (Round to one decimal place.) The return for 2019 is %. (Round to one decimal place.) The average return is %. (Round to one decimal place.)
Consider a no-load mutual fund with $457 million in assets and 12 million shares at the start of the year, and $520 million in assets and 13.21 million shares at the end of the year. During the year investors have received income distributions of $2.25 per share, and capital gains distributions of $1.57 per share. Assume that the fund carries no debt. What is the NAV at the START of the year? Group of answer choices 36.11 33.07 39.47 38.08 37.78
"The following table gives the rate of return for a certain mutual fund from 2010 to 2014: Year Rate of Return 2010 -5.9% 2011 11.4% 2012 1.4% 2013 12.7% 2014 6.5% Compute the overall rate of return during this period. Round your answer to the nearest tenth of a percent."
Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below. Which mutual fund performed better? Please show steps in Excel Year Stivers Trippi 1 11,000 5,600 2 12,000 6,300 3 13,000 6,900 4 14,000 7,600 5 15,000 8,500 6 16,000 9,200 7 17,000 9,900 8 18,000 10,600
You invested in the no-load Best Mutual Fund one year ago by purchasing 700 shares of the fund at the net asset value of $19 08 per share. The fund distributed dividends of $2.44 and capital gains of $2.22 Today, the NAV is $20 16 What was your holding period return? Your holding penod return was (Round to two decimal places) COND
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)
Consider a mutual fund that manages a portfolio of securities worth $120 million.Suppose the fund owes $4 million to its investment advisers and owes another $1million for rent, wages due, and miscellaneous expenses.The fund has 5 million shareholders.What is the Net Asset Value?
Twelve months ago, you purchased the shares of a no-load mutual fund for $22.35 per share. The fund distributed cash dividends of $0.70 and capital gains of $1.60 per share. If the net asset value of the fund is currently $24.45, what was your annual return on the investment? Round your answer to two decimal places. % If the value of the shares had been $21.32, what would have been your annual return? Round your answer to two decimal places. %
Stocks A and B have the following historical returns: a. Calculate the average rate of return for each stock during the period 2013 through2017.b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% ofStock B. What would the realized rate of return on the portfolio have been eachyear? What would the average return on the portfolio have been during thisperiod?c. Calculate the standard deviation of returns for each stock and for the portfolio.d. Calculate the coefficient of variation for each stock and for the portfolio.e. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, orthe portfolio? Why?
3. A fund manager invested $250,000 in Facebook and $350,000 in IBM at the start of 2021. By the end of 2021, Facebook and IBM shares have appreciated annually by 3% and 5%, respectively. a. b. C. 1 What is the initial value of the portfolio at the start of 2021? ) What is the value of the portfolio at the end of 2021? >What is the return of the portfolio in 2021?

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