Suppose the marginal tax rate of an investor is 35%, and he lives in a state that does not have a state income,tax, so his short term distributions are taxed at 25% . The following information is for two of Bill's bond mutual funds; MUTUAL FUNDS. FUND A. FUND B beginning NAV. $100. $10 short-term distributions. $1. $0.90 ending NAV. $109. $10.10 estimated turnover. 10%. 90% Calculate: The before tax and after tax returns on fund A and fund B and the portfolio if allocation for fund A is 40%
Suppose the marginal tax rate of an investor is 35%, and he lives in a state that does not have a state income,tax, so his short term distributions are taxed at 25% . The following information is for two of Bill's bond mutual funds; MUTUAL FUNDS. FUND A. FUND B beginning NAV. $100. $10 short-term distributions. $1. $0.90 ending NAV. $109. $10.10 estimated turnover. 10%. 90% Calculate: The before tax and after tax returns on fund A and fund B and the portfolio if allocation for fund A is 40%
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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Suppose the marginal tax rate of an investor is 35%, and he lives in a state that does not have a state income,tax, so his short term distributions are taxed at 25% . The following information is for two of Bill's bond mutual funds;
MUTUAL FUNDS. FUND A. FUND B
beginning NAV. $100. $10
short-term distributions. $1. $0.90
ending NAV. $109. $10.10
estimated turnover. 10%. 90%
Calculate:
The before tax and after tax returns on fund A and fund B and the portfolio if allocation for fund A is 40%
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