Jay owns a mutual fund holding 95% of large cap growth stocks, then her fund will occupy the top left corner of Morningstar style box. True or False True False
Q: . Which of the following is NOT a main use of foreign exchange markets: (a). Currency Ledging…
A:
Q: What is the net income for the year?
A: Net income = Amount paid in dividends + (Decrease in retained earnings)
Q: Hours worked: 52 Pay Rate :$23 Step 1: Determine regular hours Step2: Calculate overtime hours…
A: The gross pay of an employee is the sum of regular pay and overtime pay. The rate for overtime pay…
Q: In which of the following cases is IRR unreliable? I. When looking at mutually exclusive projects…
A: IRR: IRR is the Internal rate of return of the project, where the NPV of the project is Zero.
Q: if a firm has had sales which h been extremely variable, the f should Question 1 options:
A: The sales depend on the many factors and all these factors are not under company and some are beyond…
Q: Carson Electronics uses 70 percent common stock and 30 percent debt to finance its operations. The…
A: To calculate the WACC we will use the below formula WACC = (Rd*D)+(Re*E) Where Rd - After tax cost…
Q: Denver enters a project which requires an initial cash outlay of 100 and an invest- ment of 150 at…
A: We have the quantum of timing of cash flows emanating from a project. We need to find the IRR and…
Q: Suppose that there are two independent economic factors, F1 and F2. The risk-free rate is 6%, and…
A: As per the given information: Risk-free rate - 6% Standard deviation - 43% Portfolio Beta on F1…
Q: How long will it take a $85,900 investment to grow to $123,760 if money earns 3.51% compounded…
A: The FV of an asset refers to its value at a particular future time assuming that it grows at a fixed…
Q: hat is meant by measures of dispersion: standard deviation and variance. How can this be used when a…
A: Two important statical measures used in finance are standard deviation and variance of return of the…
Q: 10. Fred wants to withdraw $1800 every month for two years from his account .How much should Fred…
A: The future of deposit includes the amount that was being deposited over the period and also amount…
Q: Part III: You have decided that you would like to buy a townhouse in 8years and will need a down…
A: Required down payment of $30,000 The interest rate is 3.50% The time period is 8 years To Find:…
Q: Would a grant of $24,000 by the state to each district be equalizing in its effect on the two…
A: Introduction : No, Grant of $24,000 by The state to each district be equalizing in its effect on…
Q: Your property has net operating income of 4,500,000. Assuming you value the property with a cap rate…
A: The debt service coverage ratio (DCSR), which compares a company's operating income with the…
Q: - The common stock of Permanent Assurance Corporation currently trades at $40.00 per share, which is…
A: The growth of the company is very important for long term creation of value for shareholders and…
Q: Consider the following two mutually exclusive projects: YEAR CASH FLOW (A)…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
Q: Compute the value of Better Mousetraps for assumed sustainable growth rates of 6% through 9%, in…
A: Given: Growth rate is increased from 6% to 9% in increments of 0.5%. Growth rate is increased from…
Q: The management of the Keribels Company wishes to apply the Miller-Orr model to manage its cash…
A: Let, r = daily interest rate = 0.05% C = cost per transaction = P100 Var = variance of daily cash…
Q: AGG: A- tracks the investment results of an index composed of the total U.S. investment-grade bond…
A: Answer - AGG- aggregate Bond index is a broad based benchmark that measure the investment grade,…
Q: asking price for the land is RM7,000. (a) Advise whether Adam should buy the land. (b) (c) Calculate…
A: Lands are good source of investment because demand goes on increasing due to shortage of land and…
Q: Q21. Suppose your expectations regarding the stock price are as follows: Time Return 1 0.10 2 -0.15…
A:
Q: Brieftly discuss two important methods and the resulting consequences of financing deficit budgets.
A: Introduction: The two important methods of financing a deficit budget are debt financing and…
Q: A developer is pursuing a project with the following: Capital cost of project: $100,000.00 Initial…
A: According to bartelby guidelines , if question involves multiple subparts , then 1st sub 3 parts…
Q: Dee's made two announcements concerning its common stock today. First, the company announced that…
A: Next dividend (D1) = $2.29 Growth rate (g) = 0.0133 Discount rate (r) = 0.125 Value of the stock =…
Q: Given: an 11% 120-day $9,000 note. Find the adjusted balance (principal) using the U.S. Rule (360…
A: Given the principal $9000 Rate = 11% Interest for a period of 65 days is =…
Q: K For the following annuity due, determine the nominal annual rate of interest. Term Present Value…
A: An annuity is a series of periodic payments which are provided in return for a lump sum amount paid…
Q: Assume that all participants in the following have an interest rate or discount rate of 10%. A firm…
A:
Q: Your company has purchased equipment (for $50.000) that will reduce materials and labor costs by…
A: Breakeven period The breakeven period for any investment is the period required to make the initial…
Q: IBM stock currently sells for 64 dollars per share. The implied volatility equals 40.0. The…
A: A financial tactic used with call-and-put options is delta hedging. This tactic lessens the risks…
Q: Chris invested $300K to buy a farmland. The expected yearly revenue is assessed as $67K if farmland…
A: Internal rate of return is the rate of return where present value of cash inflows is equal to…
Q: Irene plans to retire on December 31st, 2019. She has been preparing to retire by making annual…
A: The two major aspects of time value of money are compounding and Discounting. In compounding the…
Q: Which form of market efficiency would most likely offer the greatest profit potential to an…
A: This is based on the theory of efficient market hypothesis (EMH). The EMH theory states that markets…
Q: What is the impact to the market value of a company’s equity as its book value of equity increases
A: Book Value of a company indicates Net worth of a company as per books of accounts. Book value…
Q: Get rid of lower yielding assets Increase liquidity ORemove credit risk ORemove interest rate risk…
A: Banks have many loans and mortgage but what happens that after some period it becomes quite…
Q: If the price of silver in England is £6.81 per ounce, what is the expected price of silver in the…
A: Price in England = 6.81 Spot exchange rate = 0.5173 Price of silver in United States = ?
Q: The U.S. risk-free rate is 2.1% and the expected inflation rate is 6.2%. If the expected inflation…
A: The implied risk free rate is the rate of return on a risk free asset based on theoretical…
Q: A person invested $6O00 in stock the market. The economy was bulling and return was 9% on average…
A: The amount of investment done in the stock market is risky sometime more returns and some time less…
Q: are the main disadvantages of CAPM model against the advantages of Fama and French three factor…
A: The required rate based on the risk involved in the stock is needed but there are many methods to…
Q: Consider a project that has an initial outlay of $1,200. The firm's cost of capital is 10%. The…
A: Net present value(NPV) of a project is calculated using following equation NPV = -CF0 + CF1/(1+d)1 +…
Q: Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the…
A: Expected return is the return or profit that an investor expects to receive from the investment…
Q: How is commercial real estate different from other asset types? a) lots of capital is required b)…
A: Commercial real estate is very important in the growth of any country and commercial real estate are…
Q: Hector needs $10,000 in 8 years. How much money should he deposit at the end of each quarter into a…
A: Quarterly deposit amount is calculated using following equation Periodic deposit = FV×i1+in-1 Where,…
Q: The treasurer of a major U.S. firm has $31276878 to invest for three months. The annual interest…
A: Investment amount is $31,276,878 Investment Period is 3 Months U.S Interest Rate is 0.35% per month…
Q: IBM stock currently sells for 49 dollars per share. Over 12 month(s) the price will either go up by…
A: 11.5 Percent Stricke price - 51
Q: IBM stock currently sells for 49 dollars per share. Over 12 months the price will either go up by…
A: Delta of an option is to be calculated by taking the change in the value of an option as the…
Q: North Company has a common stock price of $72. The latest reported earnings per share we $4.80 and…
A: The cost of equity is required rate of return for the shareholders and that depends on the retention…
Q: 1. Descript the economic consideration of a FM outsourcing decision and the current development of…
A: Facilities Management Outsourcing (FMO) is a management strategy whereby FM services are contracted…
Q: arithmetic and geometric average time-weighted rates of return
A: The average return on a stock is calculated using the arithmetic return, which does not take…
Q: Starware Software was founded last year to develop software for gaming applications. The founder…
A: Data given: Initial investment =$1,000,000 Shares of stock received=10,000,000 Investment by venture…
Q: e has 500,000 authorized shares of $2 par value common stock, with 110,000 shares issued and…
A: Stock splits are done by the company for many reasons and it is done for many possible reasons and…
Step by step
Solved in 2 steps
- Consider a mutual fund(ex. Contrafund) It has $10,000 in assets (stocks) and 250 shares are owned by people like you and I. Which one of the following is false?. The NAV = $40/share but will change if the market price of the stocks change If a new customer buys 1 share the NAV will change (up or down) If a new customer buys 1 share the PM will have more money to buy securities If an existing customer sells a share the NAV will not change When an existing customer sells their share(s), by law the Fund has to buy those sharesSuppose you own a mutual fund which has 13,000,000 shares outstanding. If its total assets are $36,000,0000 and its liabilities are $5,000,000, find the net asset value (in $) of the fund. Round to the nearest cent. 2$ Need Help? Read It Watch It Master ItBrandon is an analyst at a wealth management firm. One of his clients holds a $5,000 portfolio that consists of four stocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table: Stock Investment Allocation Beta Standard Deviation Atteric Inc. (AI) 35% 0.750 38.00% Arthur Trust Inc. (AT) 20% 1.500 42.00% Li Corp. (LC) 15% 1.100 45.00% Baque Co. (BC) 30% 0.300 49.00% Brandon calculated the portfolio’s beta as 0.818 and the portfolio’s required return as 8.4990%. Brandon thinks it will be a good idea to reallocate the funds in his client’s portfolio. He recommends replacing Atteric Inc.’s shares with the same amount in additional shares of Baque Co. The risk-free rate is 4%, and the market risk premium is 5.50%. According to Brandon’s recommendation, assuming that the market is in equilibrium, how much will the portfolio’s required return change? (Note: Do not round your…
- An investor has $100,000 to invest. If she invests 40% in Stock A, 30% in Stock B, and the remainder in a market index exchange-traded fund (ETF), calculate the investor's portfolio beta. Beta Stock A 0.75 Stock B 1.4 O a. 1.09 O b. 1.02 O c. 0.65 O d. 1.00You currently own shares in Berkshire Mutual Fund (BMF). Your broker calls and recommends buying shares in a small-capitalization fund managed by Wonderland Investment Group (WIG). Yourbroker says that this fund will provide significant diversification benefits for your existing holdings. She gives you the following statistics based on the performance of the two funds over the last year. Please don,t copy wrong answer.Write correct answer.Answer must be correct. and do all calculation. its carry huge .Answer follow image. Must show all calculation.5. Comparing loads and fees Claire wants to buy shares in a mutual fund and has narrowed her selection to the following four funds. Answer the questions below to help assess each fund in terms of the fees each charges. Fund NAV Net Chg. YTD % Ret. MinT p $15.32 -0.05 2.5 IntRA r $18.77 0.05 5.4 MRGG r $27.81 0.19 7.9 MajTrkⁿ $45.21 0.28 9.0 Suppose MajTrkⁿ charges a commission of 8%. This_________an example of a relatively low-load fund. If Claire purchases $4,000 worth of MajTrkⁿ shares, only $___________will actually be invested. This means that the commission—as a percentage of the amount invested—is equal to . The mutual fund MinT p is a no-load fund that imposes a_________on reinvested dividends as well as on the initial investment. Funds that charge this type of fee _________ generally be expected to outperform funds that do not charge these fees. Claire is planning on holding her shares for at least a year and wants a fund that…
- You own a mutual fund valued at $46 per share. It has a gross return of 8% and an expense ratio of 1.0%. Your share's real worth based upon the given information is . (round to the nearest cent){DO NOT INCLUDE COM SubmitBrandon is an analyst at a wealth management firm. One of his clients holds a $10,000 portfolio that consists of four stocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table: Stock Investment Allocation Beta Standard Deviation Atteric Inc. (AI) 35% 0.750 23.00% Arthur Trust Inc. (AT) 20% 1.500 27.00% Li Corp. (LC) 15% 1.100 30.00% Transfer Fuels Co. (TF) 30% 0.500 34.00% Brandon calculated the portfolio’s beta as 0.8775 and the portfolio’s expected return as 8.83%. Brandon thinks it will be a good idea to reallocate the funds in his client’s portfolio. He recommends replacing Atteric Inc.’s shares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 4%, and the market risk premium is 5.50%. According to Brandon’s recommendation, assuming that the market is in equilibrium, how much will the portfolio’s required return change? (Note: Round your…Rafael is an analyst at a wealth management firm. One of his clients holds a $10,000 portfolio that consists of four stocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table: Stock Investment Allocation Beta Standard Deviation Atteric Inc. (AI) 35% 0.900 23.00% Arthur Trust Inc. (AT) 20% 1.400 27.00% Li Corp. (LC) 15% 1.100 30.00% Transfer Fuels Co. (TF) 30% 0.300 34.00% Rafael calculated the portfolio’s beta as 0.850 and the portfolio’s required return as 8.6750%. Rafael thinks it will be a good idea to reallocate the funds in his client’s portfolio. He recommends replacing Atteric Inc.’s shares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 4%, and the market risk premium is 5.50%. According to Rafael’s recommendation, assuming that the market is in equilibrium, how much will the portfolio’s required return change? (Note: Do not round…
- 2. Mitch has invested money in a hedge fund whose return has been 12.40 percent in the recent year. She wants to check where does her hedge fund rank among the hedge funds. She would like to change the hedge fund if the fund return fail to lie in the top quartile. The return of hedge funds are given below (percentage). -34.50 11.60 24.60 12.40 -12.92 8.50 9.18 -14.48 38.41 7.45 6.24 3.06 -1.40 12.20 4.86 If you were Mitch, would you change your hedge fund? Why?Richard owns the following portfolio of securities. What is the beta for the portfolio?CompanyBetaPercent of PortfolioApple2.5015%Wells Fargo0.6550%Ebay1.7035%An individual has $35,000 invested in a stock which has a beta of 0.8 and $40,000invested in a stock with a beta of 1.4. If these are the only two investments in herportfolio, what is her portfolio’s beta? DO NOT USE EXCEL