The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) Mutual Fund $ Rate of Return Туре Fidelity Growth Company 14.83% Vanguard 500 Index 14.25% Stock fund Stock fund PIMCO Total Return 3.77% Bond fund Vanguard Total Bond Market Index 2.67% Bond fund How much would be accumulated after 30 years in a retirement account invested entirely in the Fidelity stock fund with payments of $200 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.)

Required information [The following information applies to the questions displayed below.] A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Expected Return 16% 10% Stock fund (S) Bond fund (B) The correlation between the fund returns is 0.10. Portfolio invested in the stock Portfolio invested in the bond Expected return Standard deviation Required: Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio. (Do not round intermediate calculations and round your final answers to 2 decimal places.) Standard Deviation 38% 29% % % % %

Nn. 119.

$ You are the manager of the Mighty Fine mutual fund. The following table reflects the activity of the fund during the quarter. The fund started the quarter on January 1 with a balance of $100 million. Mighty Fine Mutual Fund Monthly Data (measured at end of month) January February 5.5 -4.30 Net inflows (5 million) HPR (%) Arithmetic average Required: a. Calculate the quarterly arithmetic average return on the fund. (Do not round intermediate calculations. Round y answer to 2 decimal places.) % Geometric average -4.3 6.20 March 0 1.80 b. Calculate the quarterly geometric (time-weighted) average return on the fund. (Do not round intermediate calcul. Round your answer to 2 decimal places.) %