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.) Beginning NAV Number of Shares Purchased Monthly Percentage Return $12.72 350 1.71% +

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.) Beginning NAV Number of Shares Purchased Monthly Percentage Return $12.72 350 1.71% +

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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Similar questions

An investor buys shares in a mutual fund for $22. At the end of the year the fund distributes a dividend of $0.52, and after the distribution the net asset value of a share is $24.85. What is the investor's percentage return on the investment? Round your answer to two decimal places. 1
Assume that one year ago, you bought 210 shares of a mutual fund for $24 per share and that you received an income dividend of 50.31 cents per share and a capital gain distribution of $1.04 per share during the past 12 months. Also assume the market value of the fund is now $26.50 a share. Calculate the total return for this investment if you were to sell it now.
Calculate the number of shares purchased with a $5,000 investment in a no load mutual fund with a net asset value of $7.45. The number of shares purchased is (Type an integer or decimal rounded to the nearest thousandth as needed.). COLL
Calculate the net asset value and dollars and the number of shares purchased for the mutual fund. Round shares to thousands three decimal places?
You are considering purchasing a share of preferred stock with the following characteristics: par value = $100 dividend rate = 12% per year payment schedule = quarterly maturity date = required rate of return = 6% per year current market price = $135 per share Based on this information, answer the following: A. What is the dollar amount of the quarterly dividend on this stock? B. Using the Discounted Cash Flow Method, what is the dollar value of this stock? C. Using the Discounted Cash Flow Method, what is the annual expected return for this stock? D. Based on your answer to part B, should you invest in the stock? Why or why not? E.…
Find the following for the indicated mutual fund when the given number of shares is bought and sold 1 year later after receiving the distribution shown in the following table. (Round your answers to two decimal places.) Name Shares Bought Shares Sold Distribution SouthCo 200 at $40 200 at $50 $0.60 per share (a) Find the capital appreciation. _______________ %(b) Find the yield. ______________%(c) Find the return. ___________________%
Describe the process of calculating the Company Cost of Capital?
Over a four-year period, Matt Ewing purchased shares in the ClearBridge Large-Cap Value Fund. Use the following information: Year Investment Amount Price per Share 2018 $ 3,100 $ 29 per share 2019 3,100 37 per share 2020 3,100 34 per share 2021 3,100 36 per share At the end of four years, what is the total amount invested? At the end of four years, what is the total number of mutual fund shares purchased? At the end of four years, what is the average cost for each mutual fund share?
You are given the following information: Boston Equity Mutual Fund Total assets $ 904 million Total liabilities $ 9 million Total number of shares 42 million Calculate the net asset value for the Boston Equity mutual fund. Note: Round your answer to 2 decimal places.
Sixteen years after purchasing shares in a mutual fund for $5900, the shares sold for $11,600. What is the total return ? What is the annual return ?
An investor buys shares in a mutual fund for $22. At the end of the year the fund distributes a dividend of $0.57, and after the distribution the net asset value of a share is $24.04. What is the investor's percentage return on the investment? Round your answer to two decimal places.
Suppose you purchase 2 shares of Canadian Tire Corp. today at $11 per share. At the end of year 1 you receive $1 per share in dividends and you also buy 3 shares at $9 per share. At the end of year 2 you again receive $1 dividend per share and then you sell all your shares at $14 per share. The time-weighted geometric average return on this portfolio is approximately: a.27.1% b.18.9% c.19.5% d.31% e.23.1%

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