Investing: Inverse Mutual Funds Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the opposite of the performance of the index or category they track, and can thus be used by traders tobet against the stock market. This question is based on the following table, which shows the performance of three such funds as of February 27, 2015.+SHPIX (Short Smallcap Profund)Year-to-date Loss4%RYURX (Rydex Inverse S&P 500)RYCWX (Rydex Inverse Dow)3%6%You invested a total of $9,000 in the three funds at the beginning of 2015, including an equal amount in RYURX and RYCWX. Your year-to-date loss from the first two funds amounted to $260. How much did you invest in each of the threefunds?SHPIXRYURXRYCWX

YTD loss on SHPIX = 4%YTD loss on RYURX = 3%YTD loss on RYCWX = 6%Amount invested = $9,000To find:…

Investing: Inverse Mutual Funds Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the opposite of the performance of the index or category they track, and can thus be used by traders to bet against the stock market. This question is based on the following table, which shows the performance of three such funds as of February 27, 2015.+ Year-to-date Loss SHPIX (Short Smallcap Profund) 4% RYURX (Rydex Inverse S&P 500) RYCWX (Rydex Inverse Dow) 3% 6% You invested a total of $9,000 in the three funds at the beginning of 2015, including an equal amount in RYURX and RYCWX. Your year-to-date loss from the first two funds amounted to $260. How much did you invest in each of the three funds? SHPIX $ RYURX $ RYCWX $

Investing: Inverse Mutual Funds Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the opposite of the performance of the index or category they track, and can thus be used by traders to bet against the stock market. This question is based on the following table, which shows the performance of three such funds as of February 27, 2015.+ Year-to-date Loss SHPIX (Short Smallcap Profund) 4% RYURX (Rydex Inverse S&P 500) RYCWX (Rydex Inverse Dow) 3% 6% You invested a total of $9,000 in the three funds at the beginning of 2015, including an equal amount in RYURX and RYCWX. Your year-to-date loss from the first two funds amounted to $260. How much did you invest in each of the three funds? SHPIX $ RYURX $ RYCWX $

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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Investing: Inverse Mutual Funds Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the opposite of the performance of the index or category they track, and can thus be used by traders to bet against the stock market. This question is based on the following table, which shows the performance of three such funds as of February 27, 2015.† Year-to-date Loss SHPIX (Short Smallcap Profund) 4% RYURX (Rydex Inverse S&P 500) 3% RYCWX (Rydex Inverse Dow) 6% You invested a total of $12,000 in the three funds at the beginning of 2015, including an equal amount in RYURX and RYCWX. Your year-to-date loss from the first two funds amounted to $330. How much did you invest in each of the three funds?
Investing: Inverse Mutual Funds Inverse mutual funds, sometimes referred to as “bear market” or “short” funds, seek to deliver the opposite of the performance of the index or category they track and can thus be used by traders to bet against the stock market. Exercises 17and18 are based on the following table, which shows the performance of three such funds as of February 27, 2015: 17 Year -To-Date loss(%) DSHPIX (Short smallcap profund) 4 RYURX ( Rydex inverse S&P 500 ) 3 RYCWX (Rydex Inverse Dow ) 6 You invested a total of $6,000 in the three funds at the beginning of 2015, including equal amounts in SHPIX and RYURX. Your total year-to-date loss amounted to $260. How much did you invest in each of the three funds?
Investing: Inverse ETFS (Exchange Traded Funds) Inverse ETFS, sometimes referred to as "bear market" or "short" funds, are designed to deliver the opposite of the performance of the index or category they track, and so can be used by traders to bet against the stock market. The following table shows the performance of three such funds as of August 5, 2015.t Year-to-Date Loss (%) MYY (ProShares Short Midcap 400) SH (ProShares Short S&P 500) REW (ProShares UltraShort Technology) 7 You invested a total of $12,000 in the three funds at the beginning of 2011, including an egual amount in SH and REW. Your year-to-date loss from the first two funds amounted to $510. How much did you invest in each of the three funds? MYY $ SH 2$ REW $
Investing: Inverse Mutual Funds Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the opposite of the performance of the index or category they track, and can thus be used by traders to bet against the stock market. This question is based on the following table, which shows the performance of three such funds as of September 30, 2021.1 Year-to-Date Loss (%) SHPIX (ProFunds Short Small Cap) 17 RYURX (Rydex Inverse S&P 500) RYCWX (Rydex Inverse Dow) 16 25 You invested a total of $8,000 in the three funds at the beginning of 2021, including an equal amount in RYURX and RYCWX. As of the end of September, your year-to-date loss from the first two funds amounted to $1,000. How much did you invest in each of the three funds? SHPIX $ RYURX $ RYCWX $
Investing: Inverse ETFs (Exchange Traded Funds) Inverse ETFs, sometimes referred to as "bear market" or "short" funds, are designed to deliver the opposite of the performance of the index or category they track, and so can be used by traders to bet against the stock market. The following table shows the performance of three such funds as of August 5, 2015.t MYY (ProShares Short Midcap 400) SH (ProShares Short S&P 500) REW (ProShares UltraShort Technology) LA Year-to-Date Loss (%) 6 5 7 You inv a total of $11,000 in the ee funds at the beginning of 2011, including an equal amount in SH did you invest in each of the three funds? $ MYY SH $ REW REW. Your year-to-date loss from the first two funds amounted to $520. How much
Consider the information below on 3 mutual funds: Fund Fund Return Beta S 14.05 % 1.19 D 17.05 % 1.44 M 13.65% 0.98 During the same time period, the return on the market stock index (rM) was 12.35% and the risk - free rate ( rRF) was 2.25%. Based on this information, which statement below is Correct? Group of answer choices After adjusting for risk, mutual fund S outperformed the other two funds. On a risk - adjusted basis, all of the mutual funds had a postive Alpha. After adjusting for risk, mutual fund M outperformed the other two funds. Mutual fund D had the best Treynor ratio for the period.
QUESTION 1 Which of the following data best represents a sample? The daily returns of SABIC'S stock for the year 2021. The daily S&P 500 returns for the year 2021 as a representative of U.S. stock returns. The daily returns of stocks trading above $100 for the year 2021. None of the above QUESTION 2 Which of the following is measured with a categorical nominal scale? Mutual funds' investment style. Mutual funds' asset allocation weights. Mutual funds' age class. None of the above. 0000
Finance Consider the following information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.89. Year Fund Market Risk-Free 2008 -21.2 % -40.5 % 2 % 2009 25.1 21.1 4 2010 14 14.2 2 2011 6.2 8.8 4 2012 -2.16 -5.2 3 What are the Sharpe and Treynor ratios for the fund? (Round your answer to 4 decimal places.) Treynor ratio 2. Refer to the table below. 3 Doors, Inc. Down Co. Expected return, E (R) 16 % 9.5 % Standard deviation, σ 31 19 Correlation .40 Using the information provided on the two stocks in the table above, find the expected return and standard deviation on the minimum variance portfolio. (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Expected Return % Expected return 3. Consider the following…
Year 2009 2010 2011 2012 2013 2014 2015 2016 Average % (-AVERAGE) SD (%) (-STDEVP) SD (%) (-STDEV.S) PSB 2017 2018 Covariance average product of deviations COVAR Correlation = Cov/(SDs * SDb) CORREL (=CORREL) Rates of Return Stock Fund (%) Bond Fund (%) 30.17 5.08 32.97 7.52 21.04 -8.82 -8.10 5.27 -12.89 12.20 -28.53 -7.79 22.49 6.38 12.58 12.40 14.81 17.29 15.50 0.51 Cov(rs,B) OS XOB Slope (Beta) Deviation from Average Returns Stock Fund Bond Fund Product of Deviations Squared Deviation Stock Fund Bond Fund Variance (n) Formula Calculations. Variance (n-1) Formula Calculations
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,…
You have been given the following return information for two mutual funds (Papa and Mama), the market index, and the risk-free rate. Year Papa Fund Mama Fund Market Risk-Free 2011 –12.6 % –22.6 % –24.5 % 1 % 2012 25.4 18.5 19.5 3 2013 8.5 9.2 9.4 2 2014 15.5 8.5 7.6 4 2015 2.6 –1.2 –2.2 2 Calculate the Sharpe ratio, Treynor ratio, Jensen’s alpha, information ratio, and R-squared for both funds. (Input all amounts as positive values. Do not round intermediate calculations. Enter all answers as a decimal value rounded to 4 decimal places.) PAPA MAMA SHARPE RATIO: TREYNOR RATIO JENSEN'S ALPHA INFORMATION RATIO R-SQUARED
You wish to compare the performance of two different mutual funds. Return ßp M_Fund A 0.072 0.9 M_Fund B 0.078 1.1 During the same period, returns for the following were: S&P500 rf 0.075 0.045 Which mutual fund performed better on a risk-adjusted basis, i.e. RE: alpha? Pick the best answer, e.g. less negative alpha closer to 0 -- is better. Both funds delivered the same alpha or risk-adjusted returns One fund beat the S&P benchmark Both funds underperformed relative to their risk M_Fund B delivered positive alpha M_Fund B had higher alpha than M_Fund A

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