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.)
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 Vanguard PIMCO 500 Index Total Return Company Vanguard Total Bond Market Index Rate of Return 15.83% 13.25% 2.77% 3.67% Туре Stock fund Stock fund Bond fund Bond fund You wish to establish a trust fund from which your heirs can withdraw $10,000 per month for 20 years, at the end of which time they will receive $20,000. How large should the trust be if invested in the Fidelity stock fund? HINT [See Example 3.] (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 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
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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 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 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 Vanguard Total Bond Vanguard Mutual Fund PIMCO 500 Index Total Return Company Market Index Rate of 14.83% 14.25% 2.77% 3.67% Return Туре Stock fund Stock fund Bond fund Bond fund Part 1 How much would be accumulated after 25 years in a retirement account invested entirely in the Vanguard stock fund with payments of $300 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.) Part 2 For the past 25 years you have been depositing $700 per month in the Vanguard bond fund, and you have now transferred your current balance to the PIMCO bond fund, where you plan to continue depositing $700 per month until you retire in 30 years. How much can you anticipate having in the investment when you retire?…
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 $ Type Rate of Return Fidelity Growth Company Stock fund 30.31% Vanguard 500 Index Stock fund 17.98% PIMCO Total Return Bond fund 3.63% Vanguard Total Bond Market Index Bond fund 3.10% 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 PIMCO 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 1.] (Round your answer to the nearest cent.) 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.) MutualFund Fidelity Growth Company Vanguard 500 Index PIMCO Total Return Vanguard Total Bond Market Index Rate ofReturn 15.83% 14.25% 3.77% 3.67% Type Stock fund Stock fund Bond fund Bond fund For the past 15 years you have been depositing $300 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $300 per month until you retire in 20 years. How much can you anticipate having in the investment when you retire? HINT [See Example 1.] (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 Fund Company Type Stock fund Stock fund Mutual Rate of Return 30.31% Vanguard 500 Index 17.98% PIMCO Total Return Bond fund 3.63% Vanguard Total Bond Market Index Bond fund 3.10% For the past 15 years you have been depositing $400 per month in the Vanguard Total bond find, and you have now transferred your current balance to the PIMCO 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 1.3 (Round your answer to the nearest cent.)
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.)