The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely) Fidelity Growth Company Type Stock fund Mutual Fund Rate of Return 30.31% Vanguard 500 Index Stock fund 17.98% PIMCO Total Return Bond fund 3.63% Vanguard Total Bond Market Index Bond fund 3.30% For the past 15 years you have been depositing $400 per month in the Vanguard Total bond fund, and you have now transferred your current balance to the PINCO bond fund, where you plan to continue depositing $400 per month until you retire in 20 years. How much can you anticipate having in the investment when you retire? HINT (See Example 13 (Round your answer to the nearest cent.)

The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely) Fidelity Growth Company Type Stock fund Mutual Fund Rate of Return 30.31% Vanguard 500 Index Stock fund 17.98% PIMCO Total Return Bond fund 3.63% Vanguard Total Bond Market Index Bond fund 3.30% For the past 15 years you have been depositing $400 per month in the Vanguard Total bond fund, and you have now transferred your current balance to the PINCO bond fund, where you plan to continue depositing $400 per month until you retire in 20 years. How much can you anticipate having in the investment when you retire? HINT (See Example 13 (Round your answer to the nearest cent.)

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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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
Consider a mutual fund with $200 million in assets at the start of the year and with 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $4 million. The stocks included in the fund's portfolio increase in price by 12%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 1%, which are deducted from portfolio assets at year-end. What is the rate of return for an investor in the fund? 12.88% 30.88% 13.00% 31.00%
Calculate the net asset value (NAV) for a mutual fund with the following values: The NAV of the mutual fund is $ Data table per share. (Round to the nearest cent.) (Click on the following icon in order to copy its contents into a spreadsheet.) Market value of securities held in the portfolio = $4.3 billion Liabilities of the fund = $168 million = 318 million Shares outstanding X
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) Mutual Fund Fidelity Growth Company Vanguard 500 Index PIMCO Total Return Vanguard Total Bond Market Index Rate of Return 14.83% 14.25% 3.77% 3.67% Stock fund Stock fund Type Bond fund Bond fund How much should you pay each month into a retirement account invested in the Vanguard bond fund if you wish to retire in 35 years with an investment valued at three million dollars? HINT [See Quick Example 2.] (Round your answer to the nearest cent.) $
A year ago, an investor bought 100 shares of a mutual fund at $7.64 per share. This year, the fund has paid dividends of $0.71 per share and had a capital gains distribution of $0.52 per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $8.13. b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested in additional shares of the fund at an average price of $7.76 per share. a. Given that this no-load fund now has a net asset value of $8.13, the investor's holding period return is %. (Round to two decimal places.)
Consider a mutual fund with $200 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2 million. The stocks included in the fund’s portfolio increase in price by 8%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1%, which are deducted from portfolio assets at year-end. What is the fund’s net asset value at the start and end of the year? What is the rate of return for an investor in the fund?
please answer within 30 minutes.
You invested $90,000 in a mutual fund at the beginning of the year when the NAV was $54.3. At the end of the year, the fund paid $.40 in short-term distributions and $.57 in long-term distributions. If the NAV of the fund at the end of the year was $63.94, what was your return for the year? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
None
Suppose that at the start of the year, no-load mutual fund has a net asset value of $27.65 per share. During the year, it pays its shareholders a capital gain and dividend distribution of $1.18 per share and finishes the year with an NAV of $30.84. a. What is the return to an investor who holds 257.616 shares of this fund in his (nontaxable) retirement account? Do not round intermediate calculations. Round your answer to two decimal places. % b. What is the after-tax return for the same investor these shares were held in an ordinary savings account? Assume that the investor is in the 30% tax bracket, Do not round intermediate calculations. Round your answer to two decimal places. % c. If the investment company allowed the investor to automatically reinvest his cash distribution in additional fund shares, how many additional shares could the investor acquire? Assume that the distribution occurred at year end and that the proceeds from the distribution can be reinvested at the year-end…
Consider the Compliance Bond Fund that consists of the seven bonds shown below and has no liabilities. If initially the value of the fund was $2,500,000 and the original shares were offered to the public with a NAV of $25 per share, what is the current NAV of the fund? a. $26.27 b. $25.00 c. $21.67 d. $26.11 e. $27.11
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