Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5,000 in the Trippi mutual fund. The value of each investment at the endof each subsequent year is provided in the table below.YearStiversTrippiYear 1$11,000$5,600Year 2$12,000$6,400Year 3$12,700$7,000Year 4$13,800$7,600Year 5$15,000$8,600Year 6$16,000$9,300Year 7$17,200$9,900Year 8$18,500$10,700Compute the mean annual return for the Stivers mutual fund and for the Trippi mutual fund. Do not round intermediate calculations.StiversTrippiMean annual return (to 3 decimals)Which mutual fund performed better?Select your answer -

When all the sum of the observations is divided by its observations is referred to as Mean or…

Answered: Suppose that at the beginning of Year 1…

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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3.) An investor deposited an amount of money into a certificate of deposit that returns a 2% annual simple interest rate. A second deposit, $4500 more than the first, was placed in a mutual fund that returns an 8% anoual simple interest rate. The total interest earned on both investments for one year was $680. How much money was deposited in each account? Principal Rate (%) Time Interest Mutual Fund Certificate of Deposit Mutual: C. of D.: 4) How many liters of 20% alcohol solution should be added to 40 liters of a 50% alcohol solution to make a 30% solution? Solution strength (%) Liters Total liters of % acid
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Kyle invested money in a mutual fund for ten years. The interest rate on the mutual fund was 3% compounded quarterly for the first five years and 5% compounded semi- annually for the next five years. At the end of the ten years, Kyle's mutual fund had accumulated to $41,788.50. a. Calculate the amount that was in the mutual fund after the first five years when the interest rate changed. Round to the nearest cent b. Calculate the amount that was invested in the mutual fund at the beginning of the period. Round to the nearest cent c. Calculate the total amount of interest earned from this investment. Round to the nearest cent
Computing the Future Value of a Single Amount Evans invested $100,000 today in a mutual fund earning 6% interest, compounded annually. Round your answer to the nearest whole number (for example, enter 51 for 50.5555). Do not use negative signs with any of your answers. a. What is the value of the mutual fund in 5 years? Answer b. What is the value of the mutual fund in 20 years? Answer
John began his investing program with a $5,500 initial investment. The table below recaps his returns each year as well as the amounts he added to his investment account. What is his dollar-weighted average return? Time 0 1 2 3 4 A) 1.5 percent B) 2.2 percent C) 2.0 percent D) 1.8 percent E) 2.6 percent Investment $ 5,500 $ 2,000 $ 2,600 $ 3,000 $ 900 Return 8.5 % 5.0 % 4.5% 9.0 % 2.5%
You purchased 1,000 shares of the New Fund at a price of $32 per share at the beginning of the year. You paid a front- end load of 2%. The securities in which the fund invests increase in value by 11% during the year. The fund's expense ratio is 1%. What is your rate of return on the fund if you sell your shares at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return This is a numeric cell, so % X
Salvatore will contribute $640 to a mutual fund at the beginning of each calendar quarter. a. What will be the value of his mutual fund after 6 1/2 years if the fund earns 9% compounded annually? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Value of mutual fund $ b. How much of this amount represents investment earnings? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Investment earnings $
In the prospectus for the Brazos Aggressive Growth fund, the fee table indicates that the fund has a 12b-1 fee of 0.35 percent and an expense ratio of 1.55 percent that is collected once a year on December 1. Joan and Don Norwood have shares valued at $116,250 on December 1. What is the amount of the 12b-1 fee this year? What is the amount they will pay for expenses this year? Note: For all requirements, round answers to 2 decimal places.
A mutual fund reported year-end (as of 4:00pm that day) total assets of $508 million and an expense ratio of 1.32% and a 12b-1 fee of 1%. The fund charges a 4% back-end fee. The fund on that day has 500,000 outstanding shares and liabilities of $54.1 million. The investor is planning on investing in this mutual fund for 20 years. calculate the average annual fee that this investor will pay.
Give typed explanation
You invested $9000 in two funds paying 4% and 7% annual interest. At the end of the year, the total interest from these investments was $555. How much was invested at each rate?
Daniel invested $10,000 at time "0" in a mutual fund that guaranteed a return of 5% per year and after 5 years invested $20,000 in another guaranteed fund at 4 ½ % return. After 20 years since the first investment, how much money in total will he have in both funds? $116,984 O $65,239 O $61,000 $67, 215

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