4. Mutual fund ABC's year-end net asset value (NAV) in the past two years are Year NAV 2020 17.5 2021 18.9 2022 19.5 This mutual fund pays $0.5 dividend per share at the end of every year. (a). Stanley purchased 1000 shares of fund ABC at the end of 2020 and sold the 1000 shares at the end of 2022. What was the Stanley's average annual return over the two years? (b). John purchased 500 shares of fund ABC at the end of 2020, sold 280 shares at the end of 2021 and sold the remaining 220 shares at the end of 2022. What was the John's average annual return over the two years?

4. Mutual fund ABC's year-end net asset value (NAV) in the past two years are Year NAV 2020 17.5 2021 18.9 2022 19.5 This mutual fund pays $0.5 dividend per share at the end of every year. (a). Stanley purchased 1000 shares of fund ABC at the end of 2020 and sold the 1000 shares at the end of 2022. What was the Stanley's average annual return over the two years? (b). John purchased 500 shares of fund ABC at the end of 2020, sold 280 shares at the end of 2021 and sold the remaining 220 shares at the end of 2022. What was the John's average annual return over the two years?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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?
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?
3. If you invest P5,000 in a mutual fund with a total annual return (interest rate) of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years? a.P3,402.92b.P6,597.08c.P7,000.00d.P7,346.64
If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years? a. P3,402.92 b. P7,346.64 c. P4,629.63 d. P5,400.00
Analyze the following three years of data relating to the MoMoney Mutual Fund, . It should report the amount of dividend income and capital gains distributed to the shareholders, along with any other changes in the fund's net asset value (b = 0.5). (Click the icon here ☐ in order to copy the contents of the data table below into a spreadsheet.) 2019 2018 NAV (beginning of period) ? ? 2017 $35.56 Net investment income 0.64 0.74 0.56 Net gains on securities 5.48 4.52 - 3.41 Dividends from net investment income 0.64 0.56 Distributions from realized gains 1.61 1.96 0.51 1.44 a. What is the total income from the investment operations? b. What are the total distributions from the investment operations? a. The total income from investment operations in 2019 is $ The total income from investment operations in 2018 is $ (Round to the nearest cent.) (Round to the nearest cent.) (Round to the nearest cent.) The total income from investment operations in 2017 is $ b. The total distributions from…
Suppose that at the beginning of Year 1 you 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 below. Mean annual return (to 3 decimals) % Year Year 1 $10,700 Year 2 $11,900 Year 3 $12,900 Year 4 $13,900 Year 5 $15,000 Year 6 $16,000 Year 7 $17,100 Year 8 $18,100 Compute the mean annual return for the Stivers mutual fund and for the Trippi mutual fund. Do not round intermediate calculations. Stivers Trippi % Stivers Trippi $5,600 $6,400 $7,000 $7,600 $8,600 $9,300 $9,900 $10,700
On October 24, 2020, the market value of the investments contained in the Global Investment Fund, a mutual fund, was $28,000,000. Liabilities for the fund were $2,800,000. If the fund had 1,340,000 shares outstanding, calculate the net asset value per share. Round your answer to the nearest cent.
6. Suppose that at the start of the year, a no-load mutual fund has a net asset value of $27.15 per share. During the year, it pays its shareholders a capital gain and dividend distribution of $1.12 per share and finishes the year with an NAV of $30.34. a. What is the return to an investor who holds 257.876 shares of this fund in his (non- taxable) retirement account? b. What is the after-tax return for the same investor if these shares were held in an ordinary savings account? Assume that the investor is in the 30 percent tax bracket. c. If the investment company allowed the investor to automatically reinvest his cash distribution in additional fund shares, how many additional shares could the investor acquire? Assume that the distribution occurred at year end and that the proceeds from the distribution can be reinvested at the year-end NAV.
Suppose that at the beginning of Year 1 you 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 below. Year Stivers Trippi Mean annual return (to 3 decimals) Which mutual fund performed better? $15,000 $16,100 $17,000 $18,000 Compute the mean annual return for the Stivers mutual fund and for the Trippi mutual fund. Do not round intermediate calculations. Stivers Trippi The Trippi mutual fund V ✔ 7.847 % 9.977 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 % $10,500 $11,900 $12,900 $13,900 Hint(s) $5,700 $6,300 $7,000 $7,600 $8,600 $9,200 $9,900 $10,600 Check
An investor buys shares in a mutual fund for $20. At the end of the year the fund distributes a dividend of $0.53, and after the distribution the net asset value of a share is $24.16. What is the investor's percentage return on the investment? Round your answer to two decimal places. %
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?
Suppose at the start of the year, a no-load mutual fund has a net value of RM27.15 per share. During the year, it pays its shareholders a capital gain and dividend distribution of RM1.12 per share and finishes the year with NAV of RM30.34. Required: a. b. If at the end of the year, the fund is selling is selling at 5% discount, what is the rate of return? C. What is the return to an investor who holds 2000 shares of this fund in his retirement account? d. Differentiate between open end and closed end funds. Assume at the end of year, the company change its policy and charge. 12b-1 fees of 2%, What is the rate of return?

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