Question
A financial analyst has determined that there is a 22% probability that a mutual fund will...
A financial analyst has determined that there is a 22% probability that a mutual fund will outperform the market over a 1-year period provided that it outperforms the market the previous year. If only 12% of mutual funds outperform the market during any year, what is the probability that a mutual fund will outperform the market 2 years in a row? Probability =
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
A financial analyst examines the performance of two mutual funds and claims that the variances of...
A financial analyst examines the performance of two mutual funds
and claims that the variances of the annual returns for the bond
funds differ. To support his claim, he collects data on the annual
returns (in percent) for the years 2001 through 2010. The analyst
assumes that the annual returns for the two emerging market bond
funds are normally distributed. Use the following summary
statistics.
Mutual Fund 1
Mutual Fund 2
= 500
= 100
n1 = 10
n2 =...
A mutual fund has earned an annual average return of 15% over the last 5 years....
A mutual fund has earned an annual average return of 15% over
the last 5 years. During that time, the average risk-free rate was
2% and the average market return was 12% per year. The correlation
coefficient between the mutual fund’s and market’s returns was 0.7.
The standard deviation of returns was 45% for the mutual fund and
22% for the market. What was the fund’s CAPM alpha?
A mutual fund has earned an annual average return of 15% over the last 5 years....
A mutual fund has earned an annual average return of 15% over
the last 5 years. During that time, the average risk-free rate was
2% and the average market return was 12% per year. The correlation
coefficient between the mutual fund’s and market’s returns was 0.7.
The standard deviation of returns was 45% for the mutual fund and
22% for the market. What was the fund’s CAPM alpha?
A mutual fund has earned an annual average return of 15% over the last 5 years....
A mutual fund has earned an annual average return of 15% over
the last 5 years. During that time, the average risk-free rate was
2% and the average market return was 12% per year. The correlation
coefficient between the mutual fund’s and market’s returns was 0.7.
The standard deviation of returns was 30% for the mutual fund and
22% for the market. What was the fund’s CAPM alpha?
A financial analyst estimates that the probability that the economy will experience a recession in the...
A financial analyst estimates that the probability that the
economy will experience a recession in the next 12 months is 25%.
She also believes that if the economy encounters a recession, the
probability that her mutual fund will increase in value is 20%. If
there is no recession, the probability that the mutual fund will
increase in value is 75%.
Find the probability that the mutual fund’s value will
increase.
If there is not a recession what is the probability...
A mutual fund has earned an annual average return of 15% over the last 5 years....
A mutual fund has earned an annual average return of 15% over
the last 5 years. During that time, the average risk-free rate was
2% and the average market return was 12% per year. The correlation
coefficient between the mutual fund’s and market’s returns was 0.7.
The standard deviation of returns was 50% for the mutual fund and
22% for the market. What was the fund’s CAPM alpha?
a) -2.9%
b) -1.3%
c) 0.3%
d) 1.9%
e) 3.5%
You are a financial analyst facing the task of selecting bond mutual funds to purchase for...
You are a financial analyst facing the task of selecting bond
mutual funds to purchase for a client's portfolio. You have
narrowed the funds to be selected to fourteen different funds. In
order to diversify your client's portfolio, you will recommend the
purchase of three different funds. Eight of the funds are
short-term corporate bond funds. What is the probability that of
the three funds selected, a. exactly 1 is a short-term corporate
bond fund? b. at least 1 is...
You have invested in a particular mutual fund in the past. The fund has a 2%...
You have invested in a particular mutual fund in the past. The
fund has a 2% front-end load and an expense ratio of 0.9%. The fund
also has annual 12b-1 fees of 0.5%. Fund assets have returned on
average 12% per year over the life of the fund. If you invest
$10,000 in this fund, what total dollar amount would your
investment be worth if you planned to hold the fund for 4 years?
Assume the fund has the same...
You have invested in a particular mutual fund in the past. The fund has a 2%...
You have invested in a particular mutual fund in the past. The
fund has a 2% front-end load and an expense ratio of 0.9%. The fund
also has annual 12b-1 fees of 0.5%. Fund assets have returned on
average 12% per year over the life of the fund. If you invest
$10,000 in this fund, what total dollar amount would your
investment be worth if you planned to hold the fund for 4 years?
Assume the fund has the same...
A mutual fund has earned annual returns of 11%, -5% and 33% over the past three...
A mutual fund has earned annual returns of 11%, -5% and 33% over
the past three years. If the average risk-free rate during that
time was 2% per year, what was this fund's Sharpe Ratio during that
time period?
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 24 minutes ago
asked 58 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago
asked 2 hours ago
asked 3 hours ago
asked 3 hours ago
asked 3 hours ago