Consider an open-end mutual fund with 2 million shares outstanding, liabilities of $5 million, and the following portfolio of assets: Asset Shares Held Share Price 200,000 300,000 400,000 PFE 35 BCS 10 АМС 8 What is the net asset value of the fund? Would your answer have been different if this were a closed-end fund instead?
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- Suppose you own a mutual fund which has 11,326,555 shares outstanding. If its total assets are $70,111,050 and its liabilities are $12,444,100, find the net asset value of the fund.Net asset value (NAV) of an investment fund is calculated as total portfolio value divided by number of fund shares. Accordingly, if the total portfolio value is 100.000 $ and the number of shares is 55.000, then the NAV would be 100.000 $/55.000 = 1,818 S. Now, suppose that you are a portfolio manager of a bond fund that has 20.000 fund shares outstanding. You consider 3 investments for your portfolio: (a) A T-bill that has a 194 day maturity with a face value of 10.000 $. (b) A zero-coupon bond that has a 10 year maturity with a face value of 100.000 $. (c) A bond that pays quarterly coupon payments with an annual coupon rate of 12%, a face value of 50.000 $ and a maturity of 5 years. You know that the annual market yields are 10%. If you invest them all right now, what would be the NAV of your fund at the time of investment? (1 year = 360 days)EXHIBIT 20-6 Mutual Fund Quotation Table in the Wall Street Journal Online (3) NAV (1) (2) (4) (5) (6) Family/Fund Symbol Change YTD % 3-year % change return American Funds Class A GwthA p ICAA р EupacA WshA p AGTHX 25.53 0.01 -6.6 -7.9 AIVSX 23.99 0.01 -6.6 -8.6 AEPGX 35.99 0.17 -6.1 -5.8 AWSHX 23.60 0.02 -3.1 -9.1 СaplBA p САIВХ 46.62 0.15 -0.8 -4.8 Fidelity Invest Contra FCNTX 56.46 0.07 -3.0 -5.0 Magellan FMAGX 58.16 -0.09 -9.5 -11.3 DivIntl FDIVX 25.61 0.04 -8.5 -11.1 GoldInst r FGDIX 49.26 0.69 16.3 17.7 RealEstInc r FRIFX 10.00 0.02 10.7 3.6 John Hancock Funds A BondA p САTXFA p Classic Val p HİYMUBDA p JHNBX 15.52 0.01 10.5 8.7 ТАСАХ 10.60 0.01 8.9 4.9 PZFVX 13.70 0.03 -4.8 -15.8 JHTFX 8.30 8.6 5.1 InvGrBdA TAUSX 10.36 0.02 9.6 7.9 PIMCO Fds Institutional AllAsset PAAIX 12.30 0.01 9.4 6.3 IntIStksPLS r PISIX 8.72 0.04 4.6 -2.4 MortBckSec r PTRIX 11.10 0.01 8.7 8.8 VANGUARD INDEX FDS 500 Index VFINX 96.95 0.04 -4.7 -8.7 Europe VEURX 23.29 0.09 -10.2 -12.0 ITBond VBIIX 11.69 0.03…
- You are managing a mutual fund with the following stocks: Stock Investment Beta A $1,266 -0.2 B $1,222 -0.9 What is the beta for this mutual fund (i.e. what is the portfolio beta)? answer format: show your answer to 1 decimal place.Suppose a mutal fund has total assets of $25500000 and liabilities of 2100000. Currently there are 10200000 shares outstanding. Determine the net asset value of the fund? Round to the nearest cent1. What is a mutual fund or unit trust? Explain and discuss the business model of mutual funds. What role do they play in the economy, and in the financial sector in particular? 2. A mutual fund has assets of K5 092.2 million and K4.6 million in liabilities with outstanding shares of 150.6 million. Calculate the net asset value (NAV) of the portfolio. 3. Another mutual fund manages a portfolio of securities of K120 million. The fund owes K4 million to advisers and a further K1 million for running expenses and has 5 million shares outstanding. Calculate the net asset value.
- As an equity analyst, you have developed the following return forecasts and risk estimates for two different stock mutual funds (Fund T and Fund U): Forecasted Return CAPM Beta Fund T 9.00% 1.20 Fund U 10.00% 0.80 3.b. Decide which fund is overvalued, undervalued or properly valued and explain why?You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97. Year 2018 2019 2020 2021 2022 Fund -23.0% 25.1 14.3 6.8 -2.34 Market -43.5% 21.4 15.1 8.8 -5,2 Risk-Free 3% 5 2 0.0351 x 0.0067 X 6 2 What are the Sharpe and Treynor ratios for the fund? Note: Do not round intermediate calculations. Round your answers to 4 decimal places. X Answer is complete but not entirely correct. Sharpe ratio Treynor ratioYou have been given the following return Information for a mutual fund, the market Index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97. Year 2018 2019 2020 2021 2022 Fund -23.0% 25.1 14.3 6.8 -2.34 Market -43.5% 21.4 15.1 8.8 -5.2 Risk-Free 3% 5 2 6 2 What are the Sharpe and Treynor ratios for the fund? Note: Do not round Intermediate calculations. Round your answers to 4 decimal places. Answer is complete but not entirely correct. Sharpe ratio Treynor ratio 0.2589 0.3216
- You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97. Year 2018 2019 2020 2021 2022 Fund -15.2% 25.1 12.4 6.2 -1.2 Sortino Ratio Market -24.5% 19.5 9.4 7.6 -2.2 Risk-Free 1% 3 2 Fund 4 2 What is the Sortino ratio for the fund and the market? Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers rounded to 4 decimal places. h MarketA pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 4%. The characteristics of the risky funds are as follows: Stock fund (S) Exp. Return Bond fund (B) 0.43 15% O 1.00 0.70 11% The correlation between the fund returns is 0.2. Solve numerically for the Sharpe Ratio of the optimal risky portfolio. 0.66 Std. Deviation 0.85 26% 12%Suppose you manage an equity fund with the following securities. Use the following data to calculate the information ratio of each stock. Input Data Vogt Industries Isher Corporation Hedrock, Incorporated Alpha 0.012 0.006 0.016 Beta 0.277 1.015 1.630 Standard Deviation 0.156 0.168 0.181 Residual Standard Deviation 0.117 0.048 0.113 Required: Using the information in the table above, please calculate the information ratio for each stock. (Use cells A5 to D8 from the given information to complete this question.) Vogt Industries Isher Corporation Hedrock, Incorporated Information Ratio