Suppose at the start of the year, a no-load mutual fund has a net value of RM27.15 per share. During the year, it pays its shareholders a capital gain and dividend distribution of RM1.12 per share and finishes the year with NAV of RM30.34. Required: a. What is the return to an investor who holds 2000 shares of this fund in his retirement account? b. If at the end of the year, the fund is selling is selling at 5% discount, what is the rate of return? C. Differentiate between open end and closed end funds.

Suppose at the start of the year, a no-load mutual fund has a net value of RM27.15 per share. During the year, it pays its shareholders a capital gain and dividend distribution of RM1.12 per share and finishes the year with NAV of RM30.34. Required: a. What is the return to an investor who holds 2000 shares of this fund in his retirement account? b. If at the end of the year, the fund is selling is selling at 5% discount, what is the rate of return? C. Differentiate between open end and closed end funds.

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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Consider a no-load mutual fund with $100 million in assets, 10 million in debt, and 10 million shares at the start of the year; and $120 million in assets, 12 million in debt, and 12 million shares at the end of the year. During the year investors have received income distributions of $0.50 per share, and capital gains distributions of $0.20 per share. Assuming that the fund carries no debt, what is the rate of return on the fund? 0 0% O 7.78% O 27.78% O 10%
Consider an investment fund that starts out with £160,000. After one year, the value of the fund is £170,000. The investor deposits an additional £24,000 to the fund. After a second year, the value of the fund is £189,000. The investor withdraws £34,000. After a third year, the value of the investment fund is worth £165,000. Compute the money-weighted rate of return 数字 Enter a percentage correct to 1 decimal place % Compute the time-weighted rate of return 数字 Enter a percentage correct to 1 decimal place %
Five years ago, you invested in the Future Investco Mutual Fund by purchasing 1,400 shares of the fund at a net asset value of $18.99 per share. Because you did not need the income, you elected to reinvest all dividends and capital gains distributions. Today, you sell your 1,650 shares in this fund for $21.35 per share. What is the compounded rate of return on this investment over the five-year period? The compounded rate of return on this investment over the five-year period is. (Round to two decimal places)
If a mutual fund's net asset value is $24.00 and the fund sells its shares for $25.20, what is the load fee as a percentage of the net asset value? Round your answer to two decimal places. %
A year ago, an investor bought 100 shares of a mutual fund at $7.50 per share. This year, the fund paid dividends of $0.75 per share capital gains of $0.50 per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.20. 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 $7.75 per share.
1. You've invested $1,000 in a mutual fund with a 5% front-end load, an expense ratio of 1% and a back-end load of 5%. Expenses are paid at the end of each year. The fund produces an annual return of 8% before fees. a) What is your annual return after fees if you hold the fund for 3 years? b) What is your annual return after fees if you hold the fund for 30 years?
You invested in the no-load Best Mutual Fund one year ago by purchasing 900 shares of the fund at the net asset value of $19.44 per share. The fund distributed dividends of $1.88and capital gains of $2.12. Today, the NAV is $21.36. What was your holding period return?
Assume that one year ago, you bought 240 shares of a mutual fund for $27 per share and that you received an income dividend of $0.34 cents per share and a capital gain distribution of $1.07 per share during the past 12 months. Also assume the market value of the fund is now $29.50 a share. Calculate the total return for this investment if you were to sell it now. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
If an investor buys shares in a no-load mutual fund for $33 and after eight years the shares appreciate to $60, what is (1) the percentage return and (2) the annual compound rate of return using time value of money? Round your answers to two decimal places. Percentage return: % The annual compound rate of return: %
When Fund H started on 1/1/21, it had $318,225,000 in assets under management (AUM). The annual holding period return was 3.65% in 2021, -20.48% in 2022, and 31.48% in 2023. Some investors redeemed shares, resulting in a net cash outflow of $120,204,000 on 12/31/21. There were also new investors buying the fund shares, resulting in a net cash inflow of $27,885,000 on 12/31/22. The dollar- weighted average return of the fund is % per year during the three-year period. Multiple Choice O O O O O 3.55 3.86 5.12 4.32 2.97
K You invested in the no load Best Mutual Fund one year ago by purchasing 1,000 shares of the fund at the net asset value of $1868 per share. The fand distributed dividends of $2.04 and capital gains of $1.91 Today, the NAV is $20 19 1 Best was a load fund with a 3% bont end load, what would be the HPR? Your holding period return would be (Round to two decimal places)
You are considering investing in a mutual fund. The fund is expected to earn a return of 19.0 percent in the next year. If its annual return is normally distributed with a standard deviation of 10.3 percent, what return can you expect the fund to beat 95 percent of the time?

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