Question

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 of _____.

B.A fund has a market value of securities of $830 million, cash and receivables of $20 million, current liabilities of $14 million and has 17 million fund shares outstanding. What is the fund's NAV per share?

C.This year Shelly invested $27,000 in a mutual fund with a 6% front end load and estimated annual expenses of 1.44%. The fund's gross return is 14.0%. What is Shelly's first year return net of loads and expenses if expenses are calculated against ending NAV?

D. You buy a no load mutual fund share at a NAV of $23.50 and sell it one year later at $24.00. You also received a capital gain distribution of $2.20 and a dividend distribution of $1.30. What was your pre-tax HPR?

Answer #1

A) Now Investment per share = 21000/25 shares = 840$

Commission per share = 840*3% = 25.2$

Total commission = 25.2*25 = 630$

B) NAV per share = Assetless liability/ no of units

=(830+20) -14 /17

=49.176$

C) Statement showing net return

Particulars | Amount |

Amount invested | 27000 |

Less : front end load | 1620 |

Net amount | 25380 |

return @ 14% | 3553.2 |

Total amount | 28933.2 |

Less: Annual expenses @ 1.44% | 416.6381 |

Closing balance | 28516.56 |

Profit( closing balance less opening balance) | 1516.562 |

D)

Particulars | Amount |

Closing NAV | 24 |

Opening NAV | 23.5 |

Profit | 0.5 |

Capital distribution | 2.2 |

Dividend | 1.3 |

Total profit | 4 |

Return (4/23.5) | 17.02% |

You invested in the? no-load OhYes Mutual Fund one year ago by
purchasing 600 shares of the fund at the net asset value of ?$
24.51 per share. The fund distributed dividends of ?$2.11 and
capital gains of ?$1.58. ?Today, the NAV is ?$26.20. If OhYes was a
load fund with a 3.5?% ?front-end load, what would be the? HPR?

At the beginning of the year, you buy 800 shares in Muleshoe
Mutual Fund, which currently has a NAV of $48.10. The fund has a
front-end load of 1.8%. Over the year, the fund distributed capital
gains of $1.75 per share and dividend distributions of $1.42. At
the end of the year, the NAV was at $54.47 and the offer price was
at $55.45.
A. If you sell after one year, what is your HPR?
B. Recalculate your HPR, assuming...

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...

You purchased shares of a mutual fund at a price of $20 per
share at the beginning of the
year and paid a front-end load of 6.0%. If the securities in
which the fund invested
increased in value by 10% during the year, and the fund's
expense ratio was 1.5%, your
return if you sold the fund at the end of the year would be
a. 1.99%
b. 2.32%
c. 1.65%
d. 2.06%
e. None of the options are correct

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 _%.

64. You purchased shares of a mutual fund at a price of $20 per
share at the beginning of the year and paid a front-end load of
5.75%. If the securities in which the fund invested increased in
value by 11% during the year, and the fund's expense ratio was
1.25%, your return if you sold the fund at the end of the year
would be
A. 4.33%.
B. 3.44%.
C. 2.45%.
D. 6.87%.
{[$20 × 0.9425 × (1.11 –...

On January 1st, the shares and prices for a mutual fund at 4:00
pm are:
Stock
Shares owned
Price
1
1,000
$ 1.92
2
5,000
$ 41.18
3
3,800
$ 19.08
4
9,200
$ 37.19
5
2,000
$ 2.51
cash
n.a.
$5,353.40
Liabilities
$1,500
Stock 3 announces record earnings, and the price of stock 3
jumps to $33.44 in after-market trading. If the fund (illegally)
allows investors to buy at the current NAV, how many shares will
$50,000 buy? If...

you invested $2000 in a mutual fund with a front- end load of
5.75% at the beginning of 2005. If the securities in which the fund
invested increased in value by 11% and 5%, respectively for 2005
and 2006. the fund's expense ratio was constant at 1.25%. what is
your total return if you sold your shares of the fund at the end of
2006?

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 $2000 in a mutual fund with a front-end load of
5.75% at the beginning of 2005. If the securities in which the fund
invested increased in value by 11% and 5%, respectively for 2005
and 2006. The fund's expense ratio was constant at 1.25%. What is
your total return if you sold your shares of the fund at the end of
2006?
2.ABC company’s stock is currently selling at $100 per share.
You have $12,000 in your pocket...

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