Concept explainers
(a)
To calculate: The aggressive growth if Justin Jones has an amount of
(b)
To calculate: The growth if Justin Jones has an amount of
(c)
To calculate: The growth & income if Justin Jones has an amount of
(d)
To calculate: The income if Justin Jones has an amount of
(e)
To calculate: The cash if Justin Jones has an amount of
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Mathematical Ideas (13th Edition) - Standalone book
- 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 August 12, 2011. Year-to-date Loss SHPIX (Short Smallcap Profund) 6% RYURX (Rydex Inverse S&P 500) 5% RYIHX (Rydex Inverse High Yield) 7% You invested a total of $9,000 in the three funds at the beginning of 2011, including an equal amount in RYURX and RYIHX. Your year-to-date loss from the first two funds amounted to $400. How much did you invest in each of the three funds? SHPIX $ RYURX $ RYIHX $arrow_forwardConsider the following table containing yields for mutual funds in different asset classes (small, mid, and large cap). Small Cap Fund Explorer Value Small-Cap Value Index Admiral Small-Cap Index Admiral Shares Strategic Small-Cap Equity Explorer Small-Cap Growth Index Admiral Explorer Value Small-Cap ETF Yield (%) 1.36 2.46 1.49 1.18 0.17 0.21 2.85 1.44 Fund Yield by Asset Class Mid Cap Fund Capital Value Mid-Cap Value Index Admiral Extended Market Index Admiral Shares Mid-Cap Index Admiral Shares Mid-Cap Growth Capital Value Strategic Equity Capital Opportunity Admiral Shares Yield (%) 0.96 1.15 1.22 1.52 0.93 0.32 1.54 1.64 sum of squares for treatments≈ 1.4369 sum of squares for error 17.8020 Step 1 of 2: What are the degrees of freedom associated with the sum of squares for treatments? Large Cap Fund Equity Income High Dividend Yield Index 500 Index Admiral Shares Diversified Equity FTSE Social Index Growth Equity U.S. Growth Windsor Yield (%) 3.24 3.50 1.15 1.23 1.42 0.24 0.37…arrow_forwardConsider the following table containing yields for mutual funds in different asset classes (small, mid, and large cap). Small Cap Fund Explorer Value Small-Cap Value Index Admiral Small-Cap Index Admiral Shares Strategic Small-Cap Equity Explorer Small-Cap Growth Index Admiral Explorer Value Small-Cap ETF Yield (%) 2.93 2.46 1.49 2.91 0.17 0.21 2.67 1.44 Fund Yield by Asset Class Mid Cap Fund Capital Value Mid-Cap Value Index Admiral Extended Market Index Admiral Shares Mid-Cap Index Admiral Shares Mid-Cap Growth Capital Value Strategic Equity Capital Opportunity Admiral Shares Yield (%) 0.96 2.73 1.22 1.52 1.9 0.32 1.54 1.44 sum of squares for treatments≈ 0.6898 sum of squares for error 22.3436 Step 2 of 2: Find the mean square for error. Round your answer to two decimal places, if necessary. Large Cap Fund Equity Income High Dividend Yield Index 500 Index Admiral Shares Diversified Equity FTSE Social Index Growth Equity U.S. Growth Windsor Yield (%) 3.24 3.50 2.73 1.23 1.42 0.58 0.37…arrow_forward
- Consider the following table containing yields for mutual funds in different asset classes (small, mid, and large cap). Small Cap Fund Explorer Value Small-Cap Value Index Admiral Small-Cap Index Admiral Shares Strategic Small-Cap Equity Explorer Small-Cap Growth Index Admiral Explorer Value Small-Cap ETF Yield (%) 2.93 2.46 1.49 2.91 0.17 0.21 2.67 1.44 Fund Yield by Asset Class Mid Cap Fund Capital Value Mid-Cap Value Index Admiral Extended Market Index Admiral Shares Mid-Cap Index Admiral Shares Mid-Cap Growth Capital Value Strategic Equity Capital Opportunity Admiral Shares Yield (%) 0.96 2.73 1.22 1.52 1.9 0.32 1.54 1.44 sum of squares for treatments≈ 0.6898 sum of squares for error 22.3436 Step 1 of 2: What are the degrees of freedom for the sum of squares for error? Large Cap Fund Equity Income High Dividend Yield Index 500 Index Admiral Shares Diversified Equity FTSE Social Index Growth Equity U.S. Growth Windsor Yield (%) 3.24 3.50 2.73 1.23 1.42 0.58 0.37 1.64arrow_forwardYou do not need a lot of money to invest in a mutual fund. However, if you decide to put some money into an investment, you are usually advised to leave it in for (at least) several years. Why? Because good years tend to cancel out bad years, giving you a better overall return with less risk. To see what we mean, let's use a 3-year moving average on the Calvert Social Balanced Fund (a socially responsible fund). Year 1 2 3 4 5 6 7 8 9 10 11 % Return 1.78 17.79 7.46 5.95 −4.74 25.85 9.03 18.92 17.49 6.80 −2.38 (a) Use a calculator with mean and standard deviation keys to find the mean and standard deviation of the annual return for all 11 years. (Round your answers to two decimal places.) x = % s = % (b) To compute a 3-year moving average for 1992, we take the data values for year 3 and the prior 2 years and average them. To compute a 3-year moving average for year 4, we take the data values for year 4 and the prior 2 years and average them. Verify that the…arrow_forwardThe employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenue- producing investments together with annual rates of return are as follows. Type of Loan/Investment Annual Rate of Return (%) Automobile loans 9 Furniture loans 11 Other secured loans 12 Signature loans 13 Risk-free securities 10 The credit union will have $2,200,000 available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments. Risk-free securities may not exceed 30% of the total funds available for investment. Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans). Furniture loans plus other secured loans may not exceed the automobile loans.…arrow_forward
- Money markets are markets for Foreign stocks. Consumer automobile loans. U.S. stocks. Short-term debt securities. Long-term bonds.arrow_forwardInvesting: 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) 6 SH (ProShares Short S&P 500) 5 REW (ProShares UltraShort Technology) 7 You invested a total of $6,000 in the three funds at the beginning of 2011, including an equal amount in MYY and SH. Your total year-to-date loss amounted to $360. How much did you invest in each of the three funds? MYY $ SH REW $ %24 %24 %24arrow_forwardThere are many tax rules and regulations you should be aware of when investing-whether it be in stocks; bonds; mutual funds; real estate; or collectibles such as artwork, antiques, gems, memorabilia, stamps, and coins. Capital gains are proceeds derived from these types of investments. Unless they are specified as being tax-free, such as municipal bonds, you must pay capital gains taxes on these proceeds. Capital gains are taxed in one of two ways. If the investment is held for one year or less, this is considered short-term and is taxed as ordinary income at your regular income tax rate. As this is written, if the investment is held for more than one year, it is considered long-term and qualifies for various tax discounts, as follows for single taxpayers with earnings as shown below. Stocks Held Capital Gains Rates Up to $38,700 $38,700–$426,700 Over $426,700 Over 1 year(long-term) 0% 15% 20% (a) If you are in the 26% tax bracket for ordinary income and have a 15%…arrow_forward
- You are also given the following table of :average returns over the last 50 years T-Bills T-Bonds Stocks GeometricArithmetic GeometricArithmetic GeometricArithmetic 0.037 0.042 0.059 0.064 0.108 0.117 If you were asked to compute the equity risk premium for Steel Products, using the historical approach, what would your best estimate be? The largest investor in Steel Products is the owner/founder who owns 20% of the stock. Is she also the marginal investor in this stock? If your answer is yes write 1 and if your answer is No write 2 in the box.arrow_forwardWhy do the results imply that long term investing is less risky than short term investingarrow_forwardYou have $5000 to invest for 1 year. Fund A has an estimated 4% annual return, and Fund B has an estimated 10% annual return. Fund A is more stable, and preferred among investors with low risk tolerance. Fund B is less stable, but has larger returns. Answer the following questions about this investment opportunity.arrow_forward
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