Answered: The returns of a mutual fund manager…

The returns of a mutual fund manager for the past 3 years are the following: Year 15% Year 2 12% Year 3 -2% What is the geometric average return of the fund for the past three years?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter2: Descriptive Statistics

Section: Chapter Questions

Problem 17P: Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual...

See similar textbooks

Related questions

Q: General Account questions anser wanted

A: Approach to solving the question: Absorption Costing < Variable CostingThis is because if sales…

Q: How much?

A: Explanation of Sales Revenue:Sales revenue represents the total amount of money a company earns from…

Q: Chapter job costing

A: Explanation of Cycle Counting:Cycle counting is an inventory management technique that involves…

Q: Financial Accounting

A: Step 1: Define Time ValueThe time value of an amount arises because of the alternative uses of an…

Q: help

A: Option a: This option is correct because contextual materiality extends beyond numerical thresholds…

Q: Given answer accounting questions

A: Step 1: Define Operating LeverageThe degree of operating leverage is calculated as part of…

Q: 3 A company placed an asset costing $200,000 into service on Day 1 of Year 1. The company estimates…

A: Calculate the depreciation rate:The straight-line depreciation rate is 1 / useful life = 1 / 8 =…

Q: I need solution

A: Explanation of Days Sales Outstanding (DSO):DSO is a financial metric that measures the average…

Q: Provide correct answer the financial accounting question not use ai

A: Step 1:Calculate the coupon payment received by an investor: Coupon payment = Face value * Rate of…

Q: The following balance sheet information...

A: Explanation of Days Sales Outstanding (DSO): Days Sales Outstanding is a financial metric that…

Q: Need help with this question solution general accounting

A: To calculate the taxable income for Anderson Corporation, we need to reverse-engineer the given…

Q: The per-unit cost of an item is its average total cost (= total cost/quantity).Suppose a new cell…

A: Step 1: Formula for Per-Unit CostThe per-unit cost is calculated as: Per-Unit…

Q: Expert give me answer

A: Hello student! The term used for the depreciation of natural resources is depletion, as the business…

Q: Ivanhoe Distribution Co. has determined its December 31, 2017 inventory on a LIFO basis at $890,000.…

A: Step 1: Understand the Lower-of-Cost-or-Market RuleUnder the LCM rule, inventory is valued at the…

Q: Hii tutor please given answer not use ai..

A: Step 1: Define Variable CostingVariable Costing only accounts for variable production cost as a…

Q: Hello tutor please provide this question solution general accounting

A: Step 1: Define EBITEBIT stands for earnings before interest and taxes. This is a measure of pre-tax…

Q: Please given answer this general accounting question

A: Value of security, today = $12,800Value of security, after three years = $16,124.31Time period = 3…

Q: At the end of the year overhead applied solve this accounting questions

A: Step 1: Define OverheadsOverhead refers to the costs which are incurred in the manufacturing process…

Q: General accounting question

A: To value the record collector's collection today we use the PV concept where we dis-count the future…

Q: Romtech Company sold 51,000 units of its product at a price of $348 per unit. The total variable…

A: Key DefinitionsSales Revenue: Total revenue generated by selling the product.Variable Production…

Q: I need general accounting question answer

A: Step 1: Define Price-Earnings RatioThe price to earnings ratio is the ratio of the market price per…

Q: Eusey company requires sales solution this accounting questions

A: Step 1: Define Variable CostVariable cost refers to that portion of total cost of a company that…

Q: Financial accounting

A: Step 1: Define Total CostTotal cost indicates the entire costs incurred during the process of…

Q: Solve this

A: In accounting, allocation sequences are not universally uniform. Standard allocation methods provide…

Q: 17 Due to an unknown product defect, a company must recall its product and reimburse its customers.…

A: Thus, when a company is aware of a probable obligation-its having to recall some of its defective…

Q: SUBJECT- ACCOUNT Which of the following constitutes constructive receipt in the current year ended…

A: The concept of constructive receipt in tax law means that income is considered received when it is…

Q: Please answer the following requirements on these general accounting question

A: Step 1: Define Operating LeverageThe degree of operating leverage (DOL) is an accounting term that…

Q: Managerial Accounting Solution need

A: Step 1: Definition of Net Cash FlowNet Cash Flow is the total cash generated or used by a company…

Q: If 1 answer is not right or I'm not able to understand u will get unhelpful rate

A: Approach to solving the question: 1.1.13 Answer: b) Relative sales value method This is the standard…

Q: answer me this accounting problem

A: a) Straight-line over contract period: INCORRECT• This method is mostly applied in Companies owning…

Q: Solution

A: Given Data:Net income: $750,000Interest expense: $150,000Times interest earned ratio (TIE): 9We are…

Q: Please provide this question solution general accounting

A: Step 1: Formula Current Yield = Annual Interest/Current market price Step 2: Substitution Current…

Q: General Accounting: What purpose does transactional layering serve? a) Single entries capture…

A: Explanation of Transactional Layering:Transactional layering refers to the process of dividing a…

Q: Want accurate answer

A: a) Systematic relationships create comprehensive oversight Integrated control frameworks stand out…

Q: ??

A: Explanation of SalesSales represent the total revenue generated by a company from selling goods or…

Q: SUBJECT - GENERAL ACCOUNT Sweet Company uses the LCNRV method, on an individual-item basis, in…

A: To determine the proper unit value for balance sheet reporting under the Lower of Cost or Net…

Q: Hi expert please give me answer general accounting

A: Step 1: Define Price to Earnings RatioThe price to earnings ratio (P/E) is one of the most commonly…

Q: Question 3.6.14

A: Explanation of Sales:Sales represent the total revenue generated from selling goods or services…

Q: ?!

A: Explanation of Value-Chain Accounting Analysis:Value-chain accounting analysis is a process of…

Q: Hello tutor please provide correct answer general accounting question not use ai..

A: Step 1: Define Degree of Operating LeverageThe degree of operating leverage represents the…

Q: Product cost was?

A: To calculate the variable costing unit product cost, include only the variable manufacturing costs…

Q: Can you please solve these financial accounting question?

A: Step 1: Define FOB Shipping PointThe shipping term "FOB shipping point" denotes that as soon as the…

Q: The controller of hall industries has collected the following solve this accounting questions

A: Step 1: Define High-Low MethodHigh low method is a method in managerial accounting which aims to…

Q: Income statements for Vernon Company for Year 3 and Year 4 follow: VERNON COMPANY Income Statements…

A: Step 1:Horizontal analysis is the analysis of financial statements in which two years data is…

Q: Posting in financial account

A: Step 1: Identify Temporary DifferencesThe temporary difference arises due to the difference in…

Q: Account expert answer to this above problem

A: Step 1: Understanding the ProblemKey Information:Pretax Accounting Income (per financial…

Q: Financial accounting

A: Step 1: Define AssetsAssets are defined as the financial resources that an entity owns and manages…

Q: I need correct answer general accounting question

A: Step 1: Define Intangible AssetsIntangible assets include patents, trademarks, copyrights, goodwill,…

Q: Big Ben Service reported a decrease in income taxes payable of $4,300 during the year and an…

A: a. Cash Paid for Income Taxes (Direct Method)To calculate cash paid for income taxes using the…

Q: Paresh Company has the following information for December: Sales Variable cost of goods sold Fixed…

A: Explanation of SalesSales refer to the total revenue generated by a company from selling goods or…

Question

Solve this financial accounting question

The returns of a mutual fund manager for the past 3 years are
the following:
Year 15%
Year 2 12%
Year 3 -2%
What is the geometric average return of the fund for the past
three years?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

7. Impacts of Costs on Returns. A mutual fund has a 1.69% expense ratio and begins with a $124.655 NAV. It experiences the annual returns shown below. What are the end-of-year NAVs after fees for each year? What are the after-fee returns each year?
An investor wants to select one of the six mutual funds for the coming year. Data showing the percentage annual return for each fund during five typical one year periods are shown here (hence five outcomes): Outcomes Year A Year B Year C Year D Year E Mutual Fund 38.5 24.0 29.6 11.2 -12.1 Large Cap 34.6 25.9 -0.7 51.2 -23.7 Mid Cap 22.4 26.7 4.8 36.9 7.4 Small Cap 48.7 3.5 30.6 78.9 -34.5 Health Sector 26.5 41.9 -30.1 22.2 16.7 Tech Sector 47.8 38.2 2.2 -16.8 95.4 a) Assume the investor is conservative, what is the recommended fund? What are the maximum and minimum returns of your decision? b) Suppose we were given the probabilities of 0.1, 0.2, 0.2, 0.1, and 0.4. Using the expected value table what is the recommended mutual fund? What is the expected return? c) What is the EMV for the fund in part A? How much of an increase can be obtained by following the…
Which time period should investors use when comparing mutual funds? Latest one-year return, ending the most recent month end Latest five-year return, ending the most recent Dec31Latest one- year return, ending the most recent Dec31 No specific time period is necessarily better than any other
Investor has had the following returns in the Magic Fund for the past 4 years: 15%, 25%, -30%, 18%. Find the total return over the four years. Method of calculation should be Find the annual geometric return. Method of calculation should be clear. a) clear. b)
In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. Fund Market index 2 +24.6 +40.6 +11.6 +18.0 +0.4 +31.6 +10.9 -0.4 -1.3 -0.6 a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Did Ms. Sauros do better or worse than the market index on these measures?
In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. 2 3 4 Fund -1.5 +24.1 +42.0 +11.0 +0.5 Market index -0.6 +17.0 +31.5 +10.0 -0.4 a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Did Ms. Sauros do better or worse than the market index on these measures? Mesozoic Fund Market Portfolio Return Return Average return а. Standard deviation Did Ms. Sauros do better or worse than the b. market index on these measures?
In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. 1 2 3 4. Fund -1.3 +24.2 +40.2 +11.2 +0.4 Market index -0.7 +14.0 +31.2 +10.5 -0.5 a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Did Ms. Sauros do better or worse than the market index on these measures? Mesozoic Fund Market Portfolio Return Return Average return a. Standard deviation Did Ms. Sauros do better or worse than the b. market index on these measures?
Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table: Which of the two mutual funds performed better over this time period?
The file MutualFunds contains a data set with information for 45 mutual funds that are part of the Morningstar Funds 500. The data set includes the following five variables: Fund Type: The type of fund, labeled DE (Domestic Equity), IE (International Equity), and FI (Fixed Income) Net Asset Value (): The closing price per share Five-Year Average Return (%): The average annual return for the fund over the past five years Expense Ratio (%): The percentage of assets deducted each fiscal year for fund expenses Morningstar Rank: The risk adjusted star rating for each fund; Morningstar ranks go from a low of 1 Star to a high of 5 Stars. a. Prepare a PivotTable that gives the frequency count of the data by Fund Type (rows) and the five-year average annual return (columns). Use classes of 09.99, 1019.99, 2029.99, 3039.99, 4049.99, and 5059.99 for the Five-Year Average Return (%). b. What conclusions can you draw about the fund type and the average return over the past five years?
Question 11: You regress the monthly returns of XYZ fund for the past five years against three factors (i.e. Market factor = 1.2, SMB factor = −0.3, HML factor = 1.4)). What do these coefficient values mean and what type of stocks does the fund probably hold?
What is the rate of return to an investor in the fund during the year on these financial accounting question?
During the past 10 years, the percent returns on two mutual funds (aggressive and passive) expressed in percentages were as follows: Year Aggressive Fund Passive Fund-100% 2%-96% 2%-80% 2% -73% 4% -67% 3%-50% 2% 45% 4% 31% 3% 22% 2% Last Year 3% 4% Note that this is a sample of returns. a) Compute the expected return for the two funds. Round your answers to two decimal places. Aggressive = Number Passive = Number b) Compute the variance and standard deviation of the returns of the two funds. Round your answers to two decimal places. Variance: Aggressive = Number Passive = Number Standard Deviation:Aggressive = Number % Passive =Number %