The following table presents information on four different open-end mutual funds. Use the information in the table to answer the questions that follow. FUND NAV NET CHG YTD % RET QtrF p 13.32 0.04 3.1 TmRE r 20.77 0.14 6.0 MRGG 29.81 0.28 8.5 MajTrk 44.21 0.37 9.6 The mutual fund charges a 12b-1 fee.

The following table presents information on four different open-end mutual funds. Use the information in the table to answer the questions that follow. FUND NAV NET CHG YTD % RET QtrF p 13.32 0.04 3.1 TmRE r 20.77 0.14 6.0 MRGG 29.81 0.28 8.5 MajTrk 44.21 0.37 9.6 The mutual fund charges a 12b-1 fee.

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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FUND	NAV	NET CHG	YTD % RET
QtrF p	13.32	0.04	3.1
TmRE r	20.77	0.14	6.0
MRGG	29.81	0.28	8.5
MajTrk	44.21	0.37	9.6

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The average management fee for mutual funds ranges between the fund's assets. a) 0.50 and 2 Ob) 1.5 and 3 c) 3 and 4 d) 5 and 6 1/2 e) 7 and 8 1/2 percent of
Louis Hall read in the paper that Fidelity Growth Fund has an NAV of $13.94. He called Fidelity and asked how the NA Fidelity gave him the following information: Current market value of fund investment Current liabilities Number of shares outstanding Did Fidelity provide Louis with the correct information? O Yes O No $8,780,000 $ 975,000 560,000
When investors switch between funds within the same fund family, mutual funds may charge Select one: O a. 12b-1 fees. O b. a redemption fee. O c. a contingent deferred sales charge. d. an account maintenance fee. e. an exchange fee.
The cost of investing in a mutual fund is measured by the: A B C D front load cost expense ratio comparative performance of the fund to the Standard and Poor's 500 index taxation of distributions at the investor level
The following information applies to the questions displayed below A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5% The probability distributions of the risky funds are: Stock fund Bond fund Expected Return 17% 11 Standard Deviation 34% 25 The correlation between the fund returns is 0.15. Required: What is the Sharpe ratio of the best feasible CAL? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Sharpe ratio
Required information [The following information applies to the questions displayed below.] A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Stock fund (S) Bond fund (B) The correlation between the fund returns is 0.20. Expected Return 16% 10% Expected return Standard deviation Required: What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.) % % Standard Deviation 36% 27%
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Required information Section Break (8-11) [The following information applies to the questions displayed below.] A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.5%. The probability distributions of the risky funds are: Stock fund (S) Bond fund (B) The correlation between the fund returns is 0.15. Problem 6-9 (Algo) Expected Return 15% 9% Required: Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio. (Do not round intermediate calculations and round your final answers to 2 decimal places.) Answer is complete but not entirely correct. 35.40 × % 64.60 % 11.12 X % 26 20 x % Portfolio invested in the stock Portfolio invested in the bond Expected return Standard deviation Standard Deviation 40% 31%
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1. What is a mutual fund or unit trust? Explain and discuss the business model of mutual funds. What role do they play in the economy, and in the financial sector in particular? 2. A mutual fund has assets of K5 092.2 million and K4.6 million in liabilities with outstanding shares of 150.6 million. Calculate the net asset value (NAV) of the portfolio. 3. Another mutual fund manages a portfolio of securities of K120 million. The fund owes K4 million to advisers and a further K1 million for running expenses and has 5 million shares outstanding. Calculate the net asset value.
Open-end Fund A has 187 shares of ATT valued at $46 each and 41 shares of Toro valued at $86 each. Closed-end Fund B has 86 shares of ATT and 83 shares of Toro. Both funds have 1,000 shares outstanding.a. What is the NAV of each fund using these prices? (Round your answers to 3 decimal places. (e.g., 32.161))b. If the price of ATT stock increases to $47.25 and the price of Toro stock declines to $83.292, how does that impact the NAV of both funds? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))c. Assume that another 166 shares of ATT valued at $46 are added to Fund A. The funds needed to buy the new shares are obtained by selling 630 more shares in Fund A. What is the effect on Fund A’s NAV if the prices remain unchanged from the original prices?

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