Q: What is a benchmark and why is there a need to compare the fund's return vis-a-vis a benchmark?
A: Benchmark is considered as a standard against which the actual performances of the securities are…
Q: When evaluating a fund based on its cash-on-cash returns, what other considerations should you keep…
A: Cash on cash return: The entire return gained on a real estate investment property is measured…
Q: Which of the following does attribution analysis involve? A) Carrying out sensitivity analysis to…
A: Answer: The correct option is option (D)
Q: When do the funds earn interest at the MARR?
A: The MARR (Minimum Acceptable Rate of Return), generally referred to as hurdle rate is the lowest or…
Q: Does the PW method assume that the interest rate charged to any fundswithdrawn from a firm's…
A: The question is based on the concept of present worth calculation of any fund in investment…
Q: How does an index fund differ from an actively managed fund?
A: An index fund and actively managed fund are different investment vehicles. They have been explained…
Q: What is a cash flow hedge?
A:
Q: O Identifying your investment objective O Comparing funds based on risk and re O Buying shares in…
A: Selection of mutual funds and investment in mutual fund required planning and thinking According to…
Q: When is a firm's investment pool equal to the MARR?
A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…
Q: Calculate the portfolio truniver ratio for each fund
A: The frequency with which assets within a fund are acquired and sold by the management is referred to…
Q: = sinking fund formula, calculate the
A: Payment per month refers to the amount which a borrower should at the end of each month or period to…
Q: why is a need for investor to evaluate the investment ?
A: All investments will have a certain percentage of risk. To control the future risks in the…
Q: Analyze the advantages of an index fund or a fund of funds. Explain in details
A: Mutual funds is an investment vehicle that pools out funds from large number of investors and invest…
Q: Why is it so hard for actively managed funds to generate higher rates of return than passively…
A: Introduction: Mutual funds are institutions interested in pooling small sums from different…
Q: A high-income earner has an investment objective of maximizing his returns in the form of Capital…
A: A mutual fund having the potential of generating a significant amount of returns over a time period.
Q: Describe the Procedures used to determine the rate of return internal to nonsimple investments?
A: Procedure to compute the rate of return internal to non-simple investmentIt is an investment for…
Q: What is a private equity fund?
A: The private equity fund is defined as follows, A private equity fund is defined as the limited…
Q: Managed funds are often categorised by the type of investments purchased by the fund. These include…
A: An investor is someone who invests money in the hopes of making a profit or gaining an advantage in…
Q: How do the funds grow?
A: The major motive of every investor to grow up their investment and the following are the ways in…
Q: What is the purpose of a cash flow hedge?
A:
Q: In which phase(s) of a closed-ended fund's lifecycle is capital committed? C a C b. Formation c.…
A: A closed-end fund is a collection of investment funds based on the supply of a fixed number of…
Q: Define Money market fund
A: Introduction: Usually a financial market is a place of market on which financial instruments such as…
Q: What is fund capital?
A: Capital Fund: It is the Excess of assets over liabilities for non-profit organizations is termed as…
Q: How to rate a PE Fund? (using the S&P scaling). The known factors are: GP experience, AUM, Vintage…
A: Private value reserves are pools of cash-flow to be put resources into organizations that address a…
Q: What is Capital Fund? How is it calculated?
A: Capital Fund: It is the Excess of assets over liabilities for non profit organisations is termed as…
Q: Define mutual fund, and explain the advantages and disadvantages of this popular investment vehicle.
A: A mutual fund is a kind of financial vehicle created of a pool of money collected from several…
Q: Explain private equity (PE) fund
A: Private placement of equity shares for financing any business and avoiding the market is known as…
Q: What is hedge fund?
A: Hedge funds are the type of funds that are established by the private investment partnership or…
Q: What it the profitability index for investment project O?
A: Profitability Index = Present Value of cash flows / Initial investment =$102,500 / $95,000 =1.079
Q: what is the difference between a growth fund and balanced fund?
A: Growth and Balanced mutual funds are important tools of investing with certain different risk return…
Q: What are the advantages of evaluating fund performance based on Internal Rate of Return (IRR)? Why…
A: The internal rate of return is the expected annual growth rate from an investment. Whenever the IRR…
Q: What
A: Before we know the meaning of value investing, we know the meaning of investing. Investing means…
Q: Explain how a fund manager should rotate its portfolio to capitalize on peaks, contraction, trough…
A: Portfolio rotation is a business strategy in which a fund manager channelizes securities in and out…
Q: How do you find historical returns and benchmarks on different funds?
A: Historical returns are based on the historical data of the company which portrays how the security…
Q: What are the two ways a sinking fund can be handled? Whichmethod will be chosen by the firm if…
A: A sinking fund is a fund created periodically by setting aside money for the gradual repayment of a…
Q: What is money market fund?
A: Introduction: Money market is a market place where the short-term securities transactions are made.…
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- 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?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 $16.60. During the year the fund distributed $1.25, and at the end of the year its NAV was $18.25. What was the fund's return, and what was an investor's return? Round your answers to two decimal places. The fund's return: % Return on the individual's investment: % Why are they different? The answers are different because the fund reports its return based on the and the investrors calculate their return based on the .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
- Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV equaled $12.10. The fund paid year-end distributions of income and capital gains of $1.50. Required: What was the rate of return to an investor in the fund? (Round your answer to 2 decimal places.) Rate of return %Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV equaled $12.10. The fund paid year-end distributions of income and capital gains of $1.50. What was the (pretax) rate of return to an investor in the fund?A closed-end fund starts the year with a net asset value of OMR10. By year end, NAV equals OMR10.10. At the beginning of the year, the fund was selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 6% discount to NAV. The fund paid year end distributions of income and capital gains of OMR2.50. What is the rate of return to an investor in the fund during the year?
- An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor: Fund Value Year 0 $120 Year 1 132 Year 2 146 Year 3 133 Year 4 128 Year 5 123 Required: a. Calculate the investment returns for each year. b. Compute the arithmetic mean return. c. Calculate the geometric mean return.Corporate Fund started the year with a net asset value of $17.80. By year - end, its NAV equaled $16.30. The fund paid year - end distributions of income and capital gains of $2.20. What was the (pretax) rate of return to an investor in the fund?The New Fund had average daily assets of $3.9 billion in the past year. If New Fund's expense ratio was 0.80% and the management fee was 0.70%. a. What were the total fees paid to the fund's investment managers during the year? (Enter your answer in millions. Round your answer to 1 decimal place.) Fees paid million b. What were the other administrative expenses? (Enter your answer in millions. Round your answer to 1 decimal place.) Other administrative expenses million
- A closed-end fund starts the year with a net asset value of $31. By year-end, NAV equals $33.00. At the beginning of the year, the fund is selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 8% discount to NAV. The fund paid year-end distributions of income and capital gains of $3.40. Required: a. What is the rate of return to an investor in the fund during the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What would have been the rate of return to an investor who held the same securities as the fund manager during the year? (Round your answer to 2 decimal places.)A closed-end fund starts the year with a net asset value of $12. By year-end, NAV equals $12.10. At the beginning of the year, the fund is selling at a 2% premium to NAV. By the end of the year, the fund is selling at a 7% discount to NAV. The fund paid year-end distributions of income and capital gains of $1.50. Required: a. What is the rate of return to an investor in the fund during the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return % b. What would have been the rate of return to an investor who held the same securities as the fund manager during the year? (Round your answer to 2 decimal places.) Rate of return %20)Corporate fund started the year with a net asset value of GHS12.25. By year-end, its NAV equaled GHS12.10. The fund paid year-end distributions of income and capital gains of GHS1.50. What was the (pretax) rate of return to an investor in the fund?