Problem 17-06The Global Growth Fund is a load fund with a 5 percent front load fee. It started the year with a net asset value (NAV) of $16.00. During the year the funddistributed $1.25, and at the end of the year its NAV was $17.55. What was the fund's return, and what was an investor's return? Round your answers to twodecimal places.The fund's return:17.50purchase price%Return on the individual's investment:Why are they different?The answers are different because the fund reports its return based on the net asset value ✓%and the investrors calculate their return based on the

Net asset value is the difference of funds assets and liabilities.It is like share price for the…

The Global Growth Fund is a load fund with a 5 percent front load fee. It started the year with a net asset value (NAV) of $16.00. During the year th distributed $1.25, and at the end of the year its NAV was $17.55. What was the fund's return, and what was an investor's return? Round your answ decimal places. The fund's return: 17.50 % Return on the individual's investment: Why are they different? The answers are different because the fund reports its return based on the net asset value ✓ % and the investrors calculate their return based on

The Global Growth Fund is a load fund with a 5 percent front load fee. It started the year with a net asset value (NAV) of $16.00. During the year th distributed $1.25, and at the end of the year its NAV was $17.55. What was the fund's return, and what was an investor's return? Round your answ decimal places. The fund's return: 17.50 % Return on the individual's investment: Why are they different? The answers are different because the fund reports its return based on the net asset value ✓ % and the investrors calculate their return based on

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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The value in pounds of a fund at time t = 0 is V0 = 50, 000. After one year (at t = 1) it has increased to V1 = 51, 500 and at that time £1, 500 is withdrawn. After two years (at t = 2) the fund is worth V2 = 50, 800. (a) Compute the time-weighted rate of return. (b) If the fund is liquidated after two years what is the yield that has been achieved?
A year ago, the Very Large Growth Fund was being quoted at an NAV of $20.86 and an offer price of $21.73. Today, it's being quoted at $22.53 (NAV) and $23.47 (offer). What is the holding period return on this load fund, given that it was purchased a year ago and that its dividends and capital gains distributions over the year have totaled $0.96 per share? Assume that none of the dividends and capital gains distributions are reinvested into the fund. (Hint: You, as an investor, buy fund shares at the offer price and sell at the NAV.)
A fund starts the year with NAV 54 per share. Over the year, the fund pays out income of 3.25 per share and capital gains distributions of 3.75 per share. Assets in the portfolio grew (shrank) by 0.01, and an expense ratio of 0.016 is charged at the end of the year. What is the rate of return on the fund? (Hint: calculate NAV1 first) O 0.0953 O 0.1110 O 0.1169 O 0.1055 0.1235
QuantAlpha fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%. Assume the rate of return on fund portfolio (before any taxes) is 6% per year. How much will an investment of $1000 in the fund grow to after 10 years?
Problem 4-18 (Algo) Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.80%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and has an expense ratio of 0.20%. Assume the rate of return on both funds portfolios (before any fees) is 8% per year. Required: a. How much will an investment of $100 in each fund grow to after 1 year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Loaded Up Fund Economy Fund Investment Values b. How much will an investment of $100 in each fund grow to after 4 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Investment Values
You pay $21,600 to the Laramie Fund, which has an NAV of $18 per share at the beginning of the year. The fund deducted a front-end load of 4% at the time of the purchase. The securities in the fund then increased in value by 10% during the year. The fund's expense ratio is 1.3% and is deducted from year-end asset values. What is your rate of return on the fund if you sell your shares at the end of the year? Select the answer closest to the correct return. (Hint: The formula on slide #23 in the "Mutual Funds, ETFs, ..." slide set solves for the gross return. Your rate of return would be the gross return minus 1. The formula on slide # 23 can be written as X(1-f)(1+r-a)" (1-b) Gross Return = (1 - f)(1+r-a)" (1-b) or as Gross Return = X where X is the dollar amount invested. The other variables in the formula (f, r, a, n, b) are all defined in the slide set and in the lecture.) 4.2% 10% 8.7% O 4.7%
Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below. Which mutual fund performed better? Please show steps in Excel Year Stivers Trippi 1 11,000 5,600 2 12,000 6,300 3 13,000 6,900 4 14,000 7,600 5 15,000 8,500 6 16,000 9,200 7 17,000 9,900 8 18,000 10,600
You have $5,000 to invest You are comparing two investment funds. Fund A returns 4%/yr compounded monthly Fund B returns 4.05% compounded quarterly. Which should you choose and why?
High Growth Fund has a front load of 5% and expected return of 14.5%. Normal Fund has no load. And expected return of 13.8%. Which fund would you hold if you expect to hold the fund for 5 years? How about holding the fund for 10 years? Please show how to solve in excel
Suppose an individual invests £25,000 in a load mutual fund. The load fund entails an up-front commission charge of 4 percent of the amount invested and is deducted upfront. In addition, annual fund operating expenses are 0.85 percent, which is charged on the average net asset value invested in the fund. The return on this fund is 6 percent each year paid on the last day of the year. What would be the investor’s return on this fund after one year?
Consider an investment fund that starts out with £190,000. After one year, the value of the fund is £203,000. The investor deposits an additional £11,000 to the fund. After a second year, the value of the fund is £207,000. The investor withdraws £41,000. After a third year, the value of the investment fund is worth £177,000. Compute the money-weighted rate of return Enter a percentage correct to 1 decimal place Compute the time-weighted rate of return Enter a percentage correct to 1 decimal place
Bha

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