Please answer this question fast Questions on Mutual Fund CalcQuestion 2aKTK FUND Ltd. has the following portfolio:Fund portfolio is as follows:Stockshares200,000300,000priceABC20D25The fund has borrowed GHC1,970,000 that has not been paid any and its accruedmanagement fees with portfolio manager currents total GHC30,000. There are 4million shares outstanding. KTK FUND Ltd. share price is trading on the stockmarket at GHC12. Is the fund trading at a discount or premium?400,000600,0003540

The mutual funds are very easy way to invest in the stock market and mutual funds are managed by…

Answered: Questions on Mutual Func Question 2a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Calculate the net asset value per share (NAVPS) for a mutual fund with the following values. Market value of securities in the portfolio $1.2 billion Liabilities of the fund $39.3 million Shares outstanding 52 million The NAVPS for this mutual fund is $ (Round your answer to the nearest cent.)
Consider the following trading and performance data for four different equity mutual funds: Fund W Fund X Fund Y Fund Z Assets Under Management, $ 289.40 $ 653.70 $ 1,298.40 $ 5,567.30 Avg. for Past 12 Months (mil) Security Sales, Past 12 Months (mil) $ 37.20 $ 569.30 $ 1,453.80 $ 437.10 Expense Ratio 0.33% 0.71% 1.13% 0.21% Pretax Return, 3-Year Avg. 9.98% 10.65% 10.12% 9.83% Tax-Adjusted Return, 3-Year Avg. 9.43% 8.87% 9.34% 9.54% a. Calculate the portfolio turnover ratio for each fund. b. Which two funds are most likely to be actively managed and which two are most likely passive funds? Explain. c. Calculate the tax cost ratio for each fund. d. Which funds were the most and least tax efficient in the operations? Why?
Compute the net asset value for a share of a mutual fund with the following characteristics: Market value of assets: Market value of liabilities: Number of shares outstanding: $26.07 $23.66 O $24.41 $22.76 25.04 $177,000,000 $12,000,000 7,250,000
The composition of the Fingroup Fund portfolio is as follows: Stock A BUD с Shares 200,000 282,000 409,000 590,000 Price. $41 35 29 40 The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $55,000. There a 3.3 million shares outstanding. What is the net asset value of the fund? (Round your answer to 2 decimal places.) Net asset value
You are given the following information concerning several mutual funds: Fund Return in Excess of the Treasury Bill Rate Beta A 12.4% 1.14 B 13.2% 1.22 C 11.4% 0.90 D 9.8% 0.76 E 12.6% 0.95 During the time period, the Standard & Poor's stock index exceeded the Treasury bill rate by 10.5 percent (i.e., r(m) - r(f) = 10.5%) a. Rank the performance of each fund without adjusting for risk and adjusting for risk using the Treynor index. Which, if any, outperformed the market? (Remember, the beta of the market is 1.0.) b. The analysis in part (a) assumes each fund is sufficiently diversified so that the appropriate measure of risk is the beta coefficient. Suppose,…
Consider the following trading and performance data for four different equity mutual funds: Fund W Fund x Fund y Fund z Assets under Management, $284.4 $662.1 $1,286.4 $5,564.6 Avg. for Past 12 months (mil) Security Sales, $44.6 $566.1 $1,455.6 $438.8 Past 12 months (mil) Expense Ratio 0.33% 0.75% 1.19% 0.24% Pretax Return, 3-year avg. 9.85% 10.65% 10.44% 9.73% Tax-adjusted Return, 3-year avg. 8.84% 8.84% 9.10% 9.04% Calculate the portfolio turnover ratio for each fund. Do not round intermediate calculations. Round your answers to two decimal places. Fund W: % Fund X: % Fund Y: % Fund Z: %
The information in the table applies to the day of investment in a mutual fund. Find (a) the net asset value and (b) the number of shares purchased. Amount Invested Total Fund Assets Total Fund Liabilities Total Shares Outstanding What is the net asset value? $ (Round to the nearest cent.) How many shares were purchased? (Round to the nearest whole number.) $6400 $925 million $41 million 40 million
A mutual fund has total assets of $39,333,444 and liabilities of $6,753,789. If there are 11,521,000 sharesoutstanding, what is the net asset value of the fund? $3.02 $3.85 $2.83 $2.16
1. What is a mutual fund or unit trust? Explain and discuss the business model of mutual funds. What role do they play in the economy, and in the financial sector in particular? 2. A mutual fund has assets of K5 092.2 million and K4.6 million in liabilities with outstanding shares of 150.6 million. Calculate the net asset value (NAV) of the portfolio. 3. Another mutual fund manages a portfolio of securities of K120 million. The fund owes K4 million to advisers and a further K1 million for running expenses and has 5 million shares outstanding. Calculate the net asset value.
Only do question B Consider that 2 investment funds exist. ABC Fund(invested in 50% normal stock and 50% risky bonds) and 123 Fund(invested in 25% High risk stock and 75% normal bonds). Assume you have the following historical data of annual returns: Return S.D. Normal Stock 8% 20% Risky Bonds 10% 35% High Risk Stock 14% 40% Normal Bonds 6% 10% A)If Normal Stock and Risky Bonds have a correlation coefficient of 0.4 and High Risk Stock and Normal Bonds have correlation coefficient of 0 .2. Find the expected return and standard deviation of each Fund. B)Find the optimal risky portfolio if you could only use these two funds; assume the two funds have a correlation coefficient of 0.3. (To do…
Consider an open-end mutual fund with 2 million shares outstanding, liabilities of $5 million, and the following portfolio of assets: Asset Shares Held Share Price PFE 200,000 300,000 400,000 35 BCS 10 АМС 8 What is the net asset value of the fund? Would your answer have been different if this were a closed-end fund instead?
Calculate the NAV for a mutual fund with the following values: Market value of securities held in the portfolio = $1.2 billion Liabilities of the fund = $47 million Shares outstanding = 70 million The NAV per share is ?

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