Question

1)Assume that you have invested $500,000 to purchase shares in a hedge fund reporting $800

million in assets, $100 million in liabilities, and 70 million shares outstanding. Your initial lockout

period is 3 years. If the share price after 3 years increases to $15.28, what is your annualized

return over the 3-year holding period?

(A) 14.45%

(B) 15.18%

(C) 16%

(D) 17.73%

2)Consider a no-load mutual fund with $400 million in assets, 50 million in debt, and 15 million

shares at the start of the year and with $500 million in assets, 40 million in debt, and 18 million

shares at the end of the year. During the year investors have received income distributions of

$.50 per share and capital gain distributions of $.30 per share. If the total expense ratio is .75%,

what is the rate of return on the fund?

(A) 12.11%

(B) 12.95%

(C) 8.25%

(D) The answer cannot be determined from the information given

Answer #1

Consider a no-load mutual fund with $210 million in assets and
10 million shares at the start of the year and with $260 million in
assets and 11 million shares at the end of the year. During the
year investors have received income distributions of $2 per share
and capital gain distributions of $.30 per share. Assuming that the
fund carries no debt, and that the total expense ratio is 1%, what
is the rate of return on the fund?...

Consider a no-load mutual fund with $250 million in assets and
17 million shares at the start of the year, and $430 million in
assets and 18 million shares at the end of the year. Investors have
received income distributions of $8 per share, and capital gains
distributions of $0.50 per share. Assuming that the fund carries no
debt, and that the total expense ratio is 1%, what is the rate of
return on the fund?
a. 62.50%
b. 118.62%...

Assume that you have recently purchased 200 shares in an
investment company. Upon examining the balance sheet, you note that
the firm is reporting $200 million in assets, $70 million in
liabilities, and 20 million shares outstanding. What is the net
asset value (NAV) of these shares?
Consider a no-load mutual fund with $350 million in assets and
14 million shares at the start of the year and with $400 million in
assets and 15 million shares at the end...

Three years? ago, you invested in the Future Investco Mutual
Fund by purchasing 1,000 shares of the fund at the price of $ 19.51
per share. Because you did not need the? income, you elected to
reinvest all dividends and capital gains distributions. ? Today,
you sell your 1,100 shares in this fund for ?$22.02 per share. If
there were a 1?% load on this? fund, what would your rate of
return? be?
The compounded rate of return on this...

A mutual fund currently manages $500 Million in assets and has
issued 10 million shares. You invest $100,000 into the fund.
Suppose that over the next three years, the fund’s investments
without considering fees return 10%, -10%, and 20%. In addition,
the fund takes 1% at the start of each year for its management fee.
What will have been your annualized return as an investor, and what
will be the NAV at the end of the period?

A mutual fund currently manages $500 Million in assets and has
issued 10 million shares. You invest $100,000 into the fund.
(a) What is the NAV, and how many shares will you receive?
(b) Suppose that over the next three years, the fund’s
investments without considering fees return 10%, -10%, and 20%. In
addition, the fund takes 1% at the start of each year for its
management fee. What will have been your annualized return as an
investor, and what...

1.You invested in the no-load OhYes Mutual Fund one year ago by
purchasing 800 shares of the fund at the net asset value of $25.75
per share. The fund distributed dividends of $1.81 and capital
gains of $1.64. Today, the NAV is $26.84. If OhYes was a load
fund with a 2% front-end load, what would be the HPR?
2.One year ago, Super Star Closed-End Fund had a NAV of$10.38
and was selling at a(n) 16% discount. Today, its NAV...

A. You have $21,000 to invest. You could purchase shares in one
mutual fund or try to diversify on your own. From your investment
class you learn that you need to hold at least 25 different
securities in an equal weighted portfolio to achieve a reasonably
well diversified portfolio. If you pay an average commission of 3%
of the dollar value of the stock you buy you will have to pay
______ in commissions per stock for a total commission...

You invested in the no-load OhYes Mutual Fund one year ago by
purchasing 700 shares of the fund at the net asset value of $25.46
per share. The fund distributed dividends of $2.67 and capital
gains of $2.12. Today, the NAV is $27.15. What was your holding
period return?
Your holding period return was _%.

A year ago, an investor bought 400 shares of a mutual fund at
$8.51 per share. Over the past year, the fund has paid dividends
of $0.83 per share and had a capital gains distribution of $0.69
per share.
a. Find the investor's holding period return, given that this
no-load fund now has a net asset value of $9.28.
b. Find the holding period return, assuming all the dividends
and capital gains distributions are reinvested into additional
shares of the...

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