Consider an investment fund that starts out with £160,000. After one year, the value of the fund is £166,000. The investor deposits an additional £19,000 to the fund. After a second year, the value of the fund is £182,000. The investor withdraws £44,000. After a third year, the value of the investment fund is worth £143,000. Compute the money-weighted rate of return 数字 Enter a percentage correct to 1 decimal place % Compute the time-weighted rate of return

Consider an investment fund that starts out with £160,000. After one year, the value of the fund is £166,000. The investor deposits an additional £19,000 to the fund. After a second year, the value of the fund is £182,000. The investor withdraws £44,000. After a third year, the value of the investment fund is worth £143,000. Compute the money-weighted rate of return 数字 Enter a percentage correct to 1 decimal place % Compute the time-weighted rate of return

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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PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $550 at the end of Year 6. a. If other investments of equal risk earn 10% annually, what is its present value? Round your answer to the nearest cent. $ b. If other investments of equal risk earn 10% annually, what is its future value? Round your answer to the nearest cent. $
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 % %
An investor is setting up a fund which requires 10 years of contributions. The investor pays £250 per month for 10 years. All payments are made in arrears, i.e at the end of the period. The effective annual rate i = 1%. What is the value of the fund after 10 years? £ Enter an answer correct to 2 decimal places.
Suppose you invest $5,000 into a mutual fund that is expected to earn a rate of return of 7%. The amount of money you will have in 10 years is closest to which of the following? The amount you will have in 25Lyears is closest to which of the following? O 1) $53,500; $802,500 O 2) $2,552.56; $3,257.79 O 3) $9,835.76; $27,137.16 O 4) $3,138; $ 1,311,892 5) None of the answers are correct
You have HK$10,000,000 for a particular investment fund. Suppose the fund pays you interest monthly at interest rate of 24% p.a. The term of the fund is similar to time deposit compounded monthly. What is the Annual Equivalent Rate? For how long this investment doubles?
An investor is setting up a fund which requires 18 years of contributions. The investor pays £200 per month for 15 years. After 15 years, the payments increase by £10 for the subsequent 3 years. All payments are made in arrears, i.e at the end of the period. The effective annual rate i = 2%. What is the value of the fund after 18 years? £ 数字 Enter an answer correct to 2 decimal places.
Suppose that you have an opportunity to invest in a fund that pays 12% interest compoundedannually. Today, you invest P10,000 into this fund. Three years later, you borrow P5,000 from alocal bank at 10% effective annual interest and invest it in the fund. Two years later, you withdrawenough money from the fund to repay the bank loan and all interest due on it. Three years laterfrom this withdrawal you start taking P2,000 per year for 5 years out of the fund. After 5 years, youhave withdrawn your original P10,000. The amount remaining in the fund is earned interest. Howmuch remains?
you that will pay you $100,000 when you turn 25. If the relevant discount rate is 11 percent, how much is this fund worth today? (See Problem 3.) Calculating Rates of Return You've been offered an investment that will double your money in 12 years. What rate of return are you being offered? Check your answer using the Rule of 72. (See Problem 4.) 4.3 Calculatin
You have $5,000 to invest You are comparing two investment funds. Fund A returns 4%/yr compounded monthly Fund B returns 4.05% compounded quarterly. Which should you choose and why?
Suppose an individual invests £25,000 in a load mutual fund. The load fund entails an up-front commission charge of 4 percent of the amount invested and is deducted upfront. In addition, annual fund operating expenses are 0.85 percent, which is charged on the average net asset value invested in the fund. The return on this fund is 6 percent each year paid on the last day of the year. What would be the investor’s return on this fund after one year?
An initial investment of £10,000 has a return of £12,000 after five years. Assuming an annual discounting rate of 3%, calculate the net cash flow (NCF) and net present value (NPV). • state the NCF (to the nearest £) • state the NPV (to the nearest £) • state which is the most appropriate measure for this investment briefly explain your choice
You are going to invest in a stock mutual fund with a front-end load of 5.5 percent and an expense ratio of 1.41 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 10 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

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