Using the [Risk] tab at Morningstar.com, research the 10-year standard deviation for at least five mutual funds. (The default is 3 years, “3-yr." You must choose 10 years, “10-yr.") Choose your mutual funds by visiting mutual fund company websites, the funds available in your 401k at work, or any other method you choose. (Some good examples are below.) Also report the 10-year alpha, beta, and R-squared (correlation coefficient) values. For your own enrichment, research the definitions of alpha and beta. What are alpha and beta and what are they designed to describe about a mutual fund? (Use www.investopedia.com to research the definitions of alpha and beta.) Morningstar now reports the upside downside capture ratios on the [Ratings and Risk] tab along with standard deviation, alpha, beta, and R-squared. Report the upside downside capture ratios for your funds. Research what these numbers signify and whether as an investor you are more concerned with the upside capture or the downside capture. Lastly, use the [Performance] tab and compare your funds to the category averages. Did the funds with the lowest risk ratings have low, moderate, or high returns compared to their category averages?

Using the [Risk] tab at Morningstar.com, research the 10-year standard deviation for at least five mutual funds. (The default is 3 years, “3-yr." You must choose 10 years, “10-yr.") Choose your mutual funds by visiting mutual fund company websites, the funds available in your 401k at work, or any other method you choose. (Some good examples are below.) Also report the 10-year alpha, beta, and R-squared (correlation coefficient) values. For your own enrichment, research the definitions of alpha and beta. What are alpha and beta and what are they designed to describe about a mutual fund? (Use www.investopedia.com to research the definitions of alpha and beta.) Morningstar now reports the upside downside capture ratios on the [Ratings and Risk] tab along with standard deviation, alpha, beta, and R-squared. Report the upside downside capture ratios for your funds. Research what these numbers signify and whether as an investor you are more concerned with the upside capture or the downside capture. Lastly, use the [Performance] tab and compare your funds to the category averages. Did the funds with the lowest risk ratings have low, moderate, or high returns compared to their category averages?

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...

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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.) $
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% 2.67% Type Stock fund Stock fund 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 25 years with an investment valued at two million dollars? HINT (See Quick Example 2.] (Round your answer to the nearest cent.)
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An investor buys Go-Go Mutual Fund on January 1 at a net asset value of GHS21.20. At the end of the year, the price is GHS25.40. Also, the investor receives GHS0.50 in dividends and GHS0.35 in capital gains distributions. What is the total percent return on the beginning net asset value?
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 Rate of Return Type Fidelity Growth Company X 14.83% Vanguard 500 Index 13.25% Stock fund Stock fund PIMCO Total Return 3.77% Bond fund Vanguard Total Bond Market Index 3.67% 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 25 years with an investment valued at two million dollars? HINT [See Quick Example 2.] (Round your answer to the nearest cent.) $ 613.20
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 $ Rate of Return Type Fidelity Growth Company 14.83% Vanguard 500 Index 14.25% Stock fund Stock fund PIMCO Total Return 3.77% Bond fund Vanguard Total Bond Market Index 2.67% Bond fund How much would be accumulated after 30 years in a retirement account invested entirely in the Fidelity stock fund with payments of $200 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.)
You are going to invest in a stock mutual fund with a front-end load of 6 percent and an expense ratio of 1.39 percent. You also can invest in a money market mutual fund with a return of 2.6 percent and an expense ratio of 0.10 percent. If you plan to keep your investment for 2 years, what annual return must the stock mutual fund earn to exceed an investment in the money market fund? What if your investment horizon is 9 years? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. 2 Years 9 Years Annual Return % %
Suppose that you initially invested $10,000 in the Stivers mutual fund and $5,000 in theTrippi mutual fund. The value of each investment at the end of each subsequent year isprovided in the table:Year Stivers ($) Trippi ($)1 11,000 5,6002 12,000 6,3003 13,000 6,9004 14,000 7,6005 15,000 8,5006 16,000 9,2007 17,000 9,9008 18,000 10,600Which of the two mutual funds performed better over this time period?
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?
Suppose you invest $5,000 into a mutual fund that is expected to earn a rate of return of 7%. The amount of money you will have in 10 years is closest to which of the following? The amount you will have in 25Lyears is closest to which of the following? O 1) $53,500; $802,500 O 2) $2,552.56; $3,257.79 O 3) $9,835.76; $27,137.16 O 4) $3,138; $ 1,311,892 5) None of the answers are correct
You are going to invest in a stock mutual fund with a front-end load of 4.5 percent and an expense ratio of 1.55 percent. You also can invest in a money market mutual fund with a return of 2.5 percent and an expense ratio of 0.40 percent. If you plan to keep your investment for 2 years, what annual return must the stock mutual fund earn to exceed an investment in the money market fund? What if your investment horizon is 8 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
You are considering investing in a mutual fund. The fund is expected to earn a return of 13 percent in the next year. If its annual return is normally distributed with a standard deviation of 17 percent, what return can you expect the fund to beat 95 percent of the time? (Note: Write your answer as decimals with three decimal places. For example, if you answer is -8.7%, you should write -0.087 in the answer box. DO NOT write -8.7 in the box as you will be marked wrong).