Question

(d) A fund held by an investment manager had a value of RM2 million on 1 January 2019. RM2.5 million was invested on 1 May 2019. Immediately after this investment, the value of the fund was RM2.1 million. At the close of business on 31 December 2019, the value of the fund was 4.2 million.

(i) Calculate the time-weighted rate of return for 2019.

(ii) Calculate the dollar-weighted rate of return for 2019.

(iii) Comment on your answers to part (i) and (ii)

Answer #1

You are the manager of the Mighty Fine mutual fund. The
following table reflects the activity of the fund during the last
quarter. The fund started the quarter on January 1 with a balance
of $140 million.
Mighty Fine Mutual Fund
Monthly Data (measured at end of month)
January
February
March
Net inflows ($ million)
6.1
-4.8
0
HPR (%)
-1.10
6.50
5.80
a. Calculate the quarterly arithmetic average
return on the fund. (Round your answer to 2 decimal
places.)...

You are the manager of the Mighty Fine mutual fund. The
following table reflects the activity of the fund during the last
quarter. The fund started the quarter on January 1 with a balance
of $80 million.
Mighty Fine Mutual Fund
Monthly Data (measured at end of month)
January
February
March
Net inflows ($ million)
6.7
-4.3
0
HPR (%)
-0.30
6.80
6.80
a. Calculate the quarterly arithmetic average
return on the fund. (Round your answer to 2 decimal
places.)...

You are the manager of the Mighty Fine mutual fund. The
following table reflects the activity of the fund during the last
quarter. The fund started the quarter on January 1 with a balance
of $120 million.
Mighty Fine Mutual Fund
Monthly Data (measured at end of month)
January
February
March
Net inflows ($ million)
7.9
-3.3
0
HPR (%)
-2.70
7.40
3.80
a. Calculate the quarterly arithmetic average
return on the fund. (Round your answer to 2 decimal
places.)...

This is Actuarial Science
Problem 3 - Dollar-weighted and Time-weighted rate of
returns
An investment account has a value of $7000 on 1/1/2014. A deposit
of XX is made on 5/1/2014, a withdrawal of $400 is made on
9/1/2014, and a deposit of $300 is made on 11/1/2014. The balance
on December 31, 2014 is $8074.
Find the amount of the first deposit if the dollar-weighted rate of
return is 6%
X=
Problem 8 - Dollar-weighted and Time-weighted rate of...

Suppose you are the money manager of a $4.36 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock Investment Beta
A. 580,000. 1.50
B. 700,000. (0.50)
C. 980,000. 1.25
D 2,100,000. 0.75
if the market's required rate of return is 8% and the risk-free
rate is 5%, what is the fund's required rate of return?

This is actuarial science: Dollar-weighted and
Time-weighted rate of returns
An investment account has a value of $2000 on 1/1/2014. On
7/1/2014, the value of the account has increased to $2022 and a
deposit of X is made. On 10/1/2014, the value of the account
balance is $3237 and $620 is withdrawn. On 1/1/2015, the investment
account is worth $2688.
Compute the time-weighted rate of return if the dollar-weighted
rate of return is equal to 7.39%.
iT=
For an investment...

Suppose you are the money manager of a $4.36 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock
Investment
Beta
A
$ 380,000
1.50
B
700,000
(0.50
)
C
980,000
1.25
D
2,300,000
0.75
If the market's required rate of return is 9% and the risk-free
rate is 4%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.
%

Suppose you are the money manager of a $4.46 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock
Investment
Beta
A
$ 580,000
1.50
B
400,000
(0.50
)
C
1,180,000
1.25
D
2,300,000
0.75
If the market's required rate of return is 8% and the risk-free
rate is 5%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.
%______

Suppose you are the money manager of a $4.06 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock
Investment
Beta
A
$ 280,000
1.50
B
500,000
(0.50
)
C
1,580,000
1.25
D
1,700,000
0.75
If the market's required rate of return is 8% and the risk-free
rate is 4%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.
%

Suppose you are the money manager of a $4.98 million investment
fund. The fund consists of four stocks with the following
investments and betas:
stock
investment
beta
a
$540,000
1.50
b
700,000
(0.50)
c
1,040,000
1.25
d
2,700,000
0.75
If the market's required rate of return is 11% and the risk-free
rate is 6%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.

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