The China Fund is a mutual fund that can be purchased on the New York Stock Exchange. The rates of total return provided by the fund for each year 2004-2008 were 17%, -8.5%, 18.25%, -14.75% and 3.5%. If your investment is worth $2,508.52 at the end of 2008, what was your investment value at the beginning of 2004? For full marks your answer(s) should be rounded to the nearest cent Investment value at the beginning of 2004 = $ 0.00

The China Fund is a mutual fund that can be purchased on the New York Stock Exchange. The rates of total return provided by the fund for each year 2004-2008 were 17%, -8.5%, 18.25%, -14.75% and 3.5%. If your investment is worth $2,508.52 at the end of 2008, what was your investment value at the beginning of 2004? For full marks your answer(s) should be rounded to the nearest cent Investment value at the beginning of 2004 = $ 0.00

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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A mutual fund has $246 million dollars in assets, 27 million shares outstanding, and a total expense ratio of 0.5 percent. If during the past year the fund has bought and sold $105 million worth of assets, what is the fund's turnover rate? Enter answer in percents, accurate to two decimal places.
You have been given the following return 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 .97. Year Fund Market Risk-Free 2015 −18.80 % −36.50 % 1 % 2016 25.10 20.70 6 2017 13.60 13.00 2 2018 7.00 8.40 6 2019 −1.92 −4.20 2 Calculate Jensen’s alpha for the fund, as well as its information ratio. (Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places.)
You have been given the following return 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 2018 Fund -21.20% Market -40.50% Risk-Free 2% 2019 25.10 21.10 4 2020 14.00 14.20 2 2021 6.20 2022 -2.16 8.80 -5.20 4 3 Calculate Jensen's alpha for the fund, as well as its information ratio. Note: Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places. Jensen's alpha Information ratio %
If a mutual fund's net asset value is $23.30 and the fund sells its shares for $25.00, what is the load fee as a percentage of the net asset value? Round your answer to two decimal places.....%
You have been given the following return 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 .98. Year 2015 2016 Fund -23.60% Market -44.50% Risk-Free 1% 25.10 21.50 3 2017 14.40 15.40 2 2018 2019 7.00 -2.40 9.20 -6.20 6 2 Calculate Jensen's alpha for the fund, as well as its information ratio. (Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places.) Jensen's alpha Information ratio %
A mutual fund with K100 million in assets at the start of the year and with 10 million shares outstanding invests in a portfolio of stocks that provides no income but increases in value by 10 %.Required:(i) What is the rate of return in the fund?
Consider a no-load mutual fund with $457 million in assets and 12 million shares at the start of the year, and $520 million in assets and 13.21 million shares at the end of the year. During the year investors have received income distributions of $2.25 per share, and capital gains distributions of $1.57 per share. Assume that the fund carries no debt. What is the NAV at the START of the year? Group of answer choices 36.11 33.07 39.47 38.08 37.78
You are considering investing in a mutual fund. The fund is expected to earn a return of 12 percent in the next year. If its annual return is normally distributed with a standard deviation of 4.50 percent, what return can you expect the fund to beat 95 percent of the time? what is the expected return(%)?
During the past 10 years, the percent returns on two mutual funds (aggressive and passive) expressed in percentages were as follows: Year Aggressive Fund Passive Fund-100% 2%-96% 2%-80% 2% -73% 4% -67% 3%-50% 2% 45% 4% 31% 3% 22% 2% Last Year 3% 4% Note that this is a sample of returns. a) Compute the expected return for the two funds. Round your answers to two decimal places. Aggressive = Number Passive = Number b) Compute the variance and standard deviation of the returns of the two funds. Round your answers to two decimal places. Variance: Aggressive = Number Passive = Number Standard Deviation:Aggressive = Number % Passive =Number %
Consider a no-load mutual fund with $325 million in assets and 13 million shares at the start of the year and with $375 million in assets and 14 million shares at the end of the year. During the year investors have received income distributions of $3 per share and capital gain distributions of $0.20 per share. Assuming that the fund carries no debt, and that the total expense ratio is 2%, what is the rate of return on the fund? Multiple Choice 16.95% 17.80% 26.45% The answer cannot be determined from the information given.
Explain clearly.
An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor: Fund Value Year 0 $120 Year 1 132 Year 2 146 Year 3 133 Year 4 128 Year 5 123 Required: a. Calculate the investment returns for each year. b. Compute the arithmetic mean return. c. Calculate the geometric mean return.

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