Question

You are the manager of the Mighty Fine mutual fund. The following table reflects the activity...

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.)

Arithmetic average               %

b. Calculate the quarterly geometric (time-weighted) average return on the fund. (Round your answer to 2 decimal places.)

Geometric average               %

c. Calculate the quarterly dollar-weighted average return on the fund. (Round your answer to 2 decimal places.)

Dollar-weighted average return               %

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are the manager of the Mighty Fine mutual fund. The following table reflects the activity...
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.)...
You are the manager of the Mighty Fine mutual fund. The following table reflects the activity...
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 operating a mutual fund which today has $100mil in assets. Your returns and fund...
You are operating a mutual fund which today has $100mil in assets. Your returns and fund flows into/out of the fund are listed below Time = Return Fund Flow $Mil 1 20.00% 5 2 10.00% 3 3 -30.00% -10 4 10.00% 4 5 -5.00% -2 Question 1: What is the arithmetic average (mean) of the returns? Answer is 1% Question 2: What is the geometric average (mean) of the returns? Answer is -0.698% Question 3: What is the dollar-weighted average...
Your grandmother gave you $390 for your birthday, which you invested in a mutual fund on...
Your grandmother gave you $390 for your birthday, which you invested in a mutual fund on January 1, 2012. On June 1, 2012, she gave you $720 for your high school graduation, which you immediately deposited into your mutual fund. On January 1, 2013, found that your dollar-weighted rate of return for the previous year was 8%. On April 1, 2013 your fund balance was $1700, and you then deposited $X, which your grandmother gave you for college. On January...
A pension fund manager is considering three mutual funds. The first is a stock fund, the...
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 rate of 4.6%. The probability distribution of the two risky funds is as follows: Expected Return Standard Deviation    Stock fund (S) 16%         36%             Bond fund (B) 7%        30%         The correlation between the two fund returns is 0.16. 1A) Compute...
A pension fund manager is considering three mutual funds. The first is a stock fund, the...
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 4.3%. The probability distributions of the risky funds are:    Expected Return Standard Deviation Stock fund (S) 13 % 34 % Bond fund (B) 6 % 27 % The correlation between the fund returns is .0630. Suppose now that your portfolio...
A pension fund manager is considering three mutual funds. The first is a stock fund, the...
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 4.3%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 13% 34% Bond fund (B) 6% 27% The correlation between the fund returns is .0630. What is the reward-to-volatility ratio of the best feasible...
A. You have $21,000 to invest. You could purchase shares in one mutual fund or try...
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...
A manager buys three shares of stock today, and then sells one of those shares each...
A manager buys three shares of stock today, and then sells one of those shares each year for the next 3 years. His actions and the price history of the stock are summarized below. The stock pays no dividends. Time Price Action 0 $ 90 Buy 3 shares 1 110 Sell 1 share 2 110 Sell 1 share 3 110 Sell 1 share a. Calculate the time-weighted geometric average return on this portfolio. (Do not round intermediate calculations. Round your...
Consider an investment in the Jaba Mutual Fund. You bought the investment at the end of...
Consider an investment in the Jaba Mutual Fund. You bought the investment at the end of Year 0 for $100 million, you invested $10 million at the end of the first year and invested $20 million at the end of the second year. The investment was worth $140 million at the end of the third year. What is your money-weighted rate of return on this investment? Report your answer in decimal form to four decimal places (e.g., 1.234% report as...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT