Consider a mutual fund with $ 400 million in assets at the start of the year , and 12 million shares outstanding . If the gross return on assets is 20 % and the total expense ratio is 4 % of the year end value , what is the rate of return on the fund ?

Q: Give typing answer with explanation and conclusion A mutual fund earned an average annual return of…

A: Average annual return = 9% Risk free rate = rf = 0.8% Market return = rm = 6.7% Beta = b = 0.96

Q: Consider the following hypothetical investment for the fund. Issue a one-month liability and…

A: Calculate the coupon amount (PMT) of the bond by multiplying the face value of the bond which is…

Q: At the start of the year, you invest pay 4% of your initial wealth as commissions (called front-end…

A: Mutual fund have expenses that reduces the overall return on the mutual fund.

Q: If a mutual fund's net asset value is $23.90 and the fund sells its shares for $25.50, what is the…

A: Load fee can be computed by taking the variance of selling price and NAV of a mutual fund and then…

Q: A $20 million fund with 10% incentive fees and 1% management fees that lasts 4 years, earns a profit…

A: Hurdle rate: It is the minimum return that is required by an investor on an investment project.

Q: You purchased 1,900 shares of the New Fund at a price of $15 per share at the beginning of the year.…

A: Total number of share=1,900 Price per share=$15 Expenses ratio=2.1% Increase in value during the…

Q: You need to know the profitability of an investment fund where the amount to invest is $ 17,000, the…

A: Profitability means receiving excess funds over the investment amount. It is an additional gain…

Q: Consider a hedge fund with $400 million in assets, $60 million in debt, and 16 million shares at the…

A: 1. Rate of return on the fund = 2. NAV is computed by following formula:-NAV = where ,NAV = net…

Q: An investor has ​$80,000 to invest in a CD and a mutual fund. The CD yields 6​% and the mutual fund…

A: Mutual Fund :— A mutual fund is a professionally managed investment fund that pools money from many…

Q: d) What are the EOL values? Which of the two funds appears to have more EOL? Which fund would you…

A: EOL refers to the expected opportunity loss. Opportunity loss or regret is the difference between…

Q: onsider a no-load mutual fund with $457 million in assets and 12 million shares at the start of the…

A: …

Q: An investor has invested 75% of his assets in a money market fund. Generally, what is the investment…

A: Money market fund: It may be a sort of mutual fund that contributes as it were in profoundly liquid,…

Q: Suppose you invest $2000 into a mutual fund that is expected to earn a rate of return of 11%. The…

A: Investment (PV) = $2000 Rate of return (r) = 11%

Q: Mutual funds charge their clients an “expense ratio” for managing yourfunds. A 1.5% annual expense…

A: The future value is the future worth of cash flow at a certain rate of interest after a certain…

Q: Consider a pension fund with $20 million in assets and projected liabilities of $5, $10, and $15…

A: Duration of bond shows the weighted period required to receive all cash flows of the bond and it…

Q: What is the equivalent average annual effective rate of interest over 5-year period if the fund…

A: Effective interest rate is the interest rate considering the impact of compounding on the interest…

Q: Twelve months ago you purchases shares of a no-load mutual fund for $22.25 per share.  The fund…

A: Purchase price = $22.25 per shareCash dividends = $0.90 per shareCapital gains = $1.25 per shareNet…

Q: $1,000 is invested in a fund at the beginning of the year. The fund rate of return is 8% for the…

A: Investment amount = $1000 Interest rate is divided semi annually First half year, Interest rate = 8%…

Q: Consider a no-load mutual fund with $457 million in assets and 12 million shares at the start of the…

A: The question is based on the concept of mutual fund

Q: Suppose that $18,000 is invested in a bond fund and the account grows to $23,344.74 in 5 yr. a. Use…

A: Continuously compounded interest rate is the interest which is calculated on the principal amount as…

Q: Yamaha Growth Fund has an expense ratio of 1.83%. If you invest $55,000 in this fund, what is the…

A: Expense ratio is the percentage of the fund’s asset which is used for administrative and operating…

Q: f you plan to invest for 5 years, what annual rate of return (i.e. gross ret) must the fund…

A: Information Provided: Expense Ratio = 0.5% CD interest = 3.5% Load of mutual fund = 4.5%

Q: You invested $1,100,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the…

A: Assets under management = $1,100,000Loss in year 1 = 11%Gain in year 2 = 19%Fee structure = 2/20…

Q: A mutual fund has assets of $50 million, liabilities of $150000 million and 1 million shares what is…

A: NAV FORMULA: NAV=asset - liabiltiesnumber of outstanding shares

Q: An investor is considering two mutual funds. Fund A has a 5.75 percent front-end load and a 1.25…

A: An investment fund is a managed fund that collects capital funds from individual investors and…

Q: Calculate the net asset value per share (NAVPS) for a mutual fund with the following values. Market…

A:

Q: Suppose you own a mutual fund, which has 17,000,000 shares outstanding. If the total assets are…

A: The value of each fund unit is its net asset value, which is derived by dividing the fund's net…

Q: Consider a $10 million fund with 20% incentive fees and 2% management fees that lasts 5 years, earns…

A: Hedge funds are an investment option available for HNIs because they involve complex trading…

Q: assume that one year ago you bought 140 shares of mutual fund for $20 per share you receive the…

A: Data given: Purchase price (P0)=$20 per share Capital gain distribution (D)= 0.65 per share Current…

Q: The China Fund is a mutual fund that can be purchased on the New York Stock Exchange. The rates of…

A: The problem is asking us to find the initial investment value at the beginning of 2004. We are given…

Q: Calculate the NAV for a mutual fund with the following​ values:   Market value of securities held in…

A: The formula to compute net asset value as follows:

Q: Consider an investment fund that starts out with £160,000. After one year, the value of the fund is…

A: Here,

Q: Cognana fund has 9.8 million shares outstanding. The fund’s portfolio is now valued at $500 million,…

A: Net asset value of a fund is popularly called as NAV. It is the per unit market value of all the…

Q: ou are considering an investment in a mutual fund with a 5% load and an expense ratio of 0.5%. You…

A: In order to invest in mutual fund, the investor has to pay the front end load fees. Such fees are…

Q: You have a mutual fund with $100 million worth of total assets which is calculated at the end of the…

A: Net Assets Value: It is generally computed to identify the potential investment opportunities within…

Q: The aqua liquid money market mutual fund has nav $1 per share. During the year asset held by the…

A: Mutual Fund NAV is $1 per share Invested amount is $30,000 (start of the year) Fund appreciation…

Q: Consider a no-load mutual fund with $100 million in assets, 10 million in debt, and 10 million…

A: Total assets at the start of year=$100 millionDebt in beginning=$10 millionTotal assets at the end…

Q: You have invested P100,000 in a mutual fund that promises to pay 8% each year. You will keep this…

A: Future value of the present amount With present value (PV), interest rate (i) and period (n), the…

Q: A closed-end fund starts the year with a net asset value of $31. By year-end, NAV equals $33.00. At…

A: Given, Net Asset value = $31 NAV = $33 3% premium to NAV Income and capital gains = $3.40

Q: Consider an investment fund that starts out with £160,000. After one year, the value of the fund is…

A: Here,

Q: If a mutual fund's net asset value is $24.00 and the fund sells its shares for $25.20, what is the…

A: load fee as a percentage of net asset value =( (sale value of share - net asset value)/ net asset…