The composition of the Fingroup Fund portfolio is as follows:Stock Shares PriceA 200,000 $ 34B 280,000 38C 410,000 30D 580,000 45During the year the portfolio manager sells all of the holdings of stock D and replaces them with 200,000 shares of stock E at $30 per share and 300,000 shares of stock F at $67 per share.What is the portfolio turnover rate? (Round your answer to 1 decimal place.)Turnover rate%

Step 1: Calculate the total value of the portfolio at the beginning of the year.Step 2: Compute the…

Answered: The composition of the Fingroup Fund…

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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The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 280,000 $ 35 B 380,000 40 C 480,000 15 D 680,000 20 If during the year the portfolio manager sells all of the holdings of stock D and replaces it with 170,000 shares of stock E at $50 per share and 170,000 shares of stock F at $30 per share, what is the portfolio turnover rate? (Round your answer to 2 decimal places.)
The composition of the Fingroup Fund portfolio is as follows: Price $ 41 37 23 40 Stock A B C Shares 200,000 294,000 403,000 630,000 During the year the portfolio manager sells all of the holdings of stock D and replaces it with 200,000 shares of stock E at $60 per share and 220,000 shares of stock F at $60 per share. What is the portfolio turnover rate? (Round your answer to 1 decimal place.) Turnover rate %
Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid-ask spreads amount to 0.5% of the value of the trade. If the portfolio turnover rate is 55%, by how much is the total return of the portfolio reduced by trading costs? (Round your answer to 2 decimal places.) Reduction in portfolio returns %
The composition of the Fingroup Fund portfolio is as follows: Stock shares price A 200,000 $ 33 B 278,000 41 C 411,000 31 D 570,000 50 During the year the portfolio manager sells all of the holdings of stock D and replaces it with 200,000 shares of stock E at $60 per share and 220,000 shares of stock F at $75 per share. What is the portfolio turnover rate?
Donald Gilmore has $100,000 invested in a 2-stock portfolio. $30,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta? Select the correct answer. a. 0.73 b. 0.80 c. 0.87 d. 1.01 e. 0.94
Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid–ask spreads amount to 2.8% of the value of the trade. If the portfolio turnover rate is 50%, by how much is the total return of the portfolio reduced by trading costs? (Round your answer to 1 decimal place.)
The composition of the Fingroup Fund portfolio is as follows: Stock ABCD Shares 370,000 470,000 570,000 770,000 Price $ 35 40 10 15 Required: If during the year the portfolio manager sells all of the holdings of stock D and replaces it with 210,000 shares of stock E at $40 per share and 210,000 shares of stock F at $15 per share, what is the portfolio turnover rate? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Turnover rate 29.92 %
A pension fund currently invests in five different stocks as follows: Stock A B C D E Invested Amount $2 mil $3 mil $2 mil $2 mil $1 mil beta 1.7 Expected Return 7% 15.5% 4.5% 12% 14.5% It is assumed that the CAPM holds, and the market is in equilibrium. The beta of the portfolio is 0.76. Fill in the blanks.
Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate is 7%. Your risky portfolio includes the following investments in the given proportions: Stock A Stock B Stock C 27% 33 40 Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 15%. Required: a. What is the proportion y? (Round your answer to 1 decimal place.) Proportion y % 4
Reconsider the Fingroup Fund in the previous problem. If during the year the portfolio manager sells all of the holdings of stock D and replaces it with 200,000 shares of stock E at Php50 per share and 200,000 shares of stock F at Php25 per share, what is the portfolio turnover rate?
What is the beta of the portfolio held by Blue Co.? Blue Co. has portfolio fund consist of three stock s as follows stock invetsment beta monde 2,500,000 1.3 bdo 1,300,000 average pal 1,200,000 (.50)
What is the expected return for the following portfolio? (State your answer in percent with two decimal places.) Stock Expected returns Investment AAA 35% $500,000 BBB 29% $1,300,000 CCC 18% $1,200,000 DDD 7% $1,500,000 O.17.13% O.19.40% O.21.01% O.22.21% O.23.88%

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