In evaluating the performance of your Canadian equity mutual fund, the most appropriate comparison would be its performance relative to the Question 57 options: Dow Jones Industrial Average. S&P 500 index. S&P/TSX composite index. cost of living (CPI) index.
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Give typing answer with explanation and conclusion
In evaluating the performance of your Canadian equity mutual fund, the most appropriate comparison would be its performance relative to the
Question 57 options:
Dow Jones Industrial Average.
S&P 500 index.
S&P/TSX composite index.
cost of living (CPI) index.
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- 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 RatioUse the information for the question(s) below. An exchange-traded fund (ETF) is a security that represents a portfolio of individual stocks. Consider an ETF for which each share represents a portfolio of three shares of International Business Machines (IBM), five shares of Apple (AAPL), and eight shares of Tesla (TSLA). Suppose the current market price of each individual stock is shown below: Stock Current Price IBM $145.60 Apple $180.00 Tesla $267.50 What is the price per share of the ETF in a normal market? Assume that the ETF is trading for $3,700.00. What (if any) arbitrage opportunity exists? What (if any) trades would you make?Write a two to three sentence description of: a)Vanguard Total (US) Stock Market ETF b)Vanguard FTSE Developed Markets ETF c)SPDR Portfolio TIPS ETF d)SPDR Bloomberg Barclays High Yield Bond ETF e)Vanguard Target-Retirement 2065 Mutual Fund f)Vanguard LifeStrategy Moderate Growth Mutual fund
- 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.(Using the CAPM to find expected returns) Sante Capital operates two mutual funds headquartered in Houston, Texas. The firm is evaluating the stock of four different firms for possible inclusion in its fund holdings. As part of their analysis, Sante's managers have asked their junior analyst to estimate the investor-required rate of return on each firm's shares using the CAPM and the following estimates: The rate of interest on short-term U.S. Treasury securities is currently 4 percent, and the expected return for the market portfolio is 10 percent. What should be the expected rates of return for each investment? Security Beta A 1.67 B 0.58 C 1.14 D 0.78 (Click on the icon in order to copy its contents into a spreadsheet.) Question content area bottom Part 1 a. The expected rate of return for security A, which has a beta of 1.67, is enter your response here%. (Round to two decimal places.) Part 2 b. The expected…If all of the following mutual funds are designed to passively mimic the S&P 500 stock index, which mutual fund would be the best choice? Mutual fund C with an expense ratio .07% Mutual fund D with an expense ratio of .12% Mutual fund A with expense ratio .28% Mutual fund B with an expense ratio of .59%
- You plan to invest $1000 in a corporate bond fund or in a common stock fun. The information to the right about the annual return (per $1000) of each of these investments under different economic conditions is available, along with the probability that each of these economic conditions will occur. Complete parts (a) through (c) a. Compute the expected return for the corporate bond fund and for the common stock fund b. Compute the standard deviation for the corporate bond fund and for the common stock fund c. Would you invest in the corporate bond fund or the common stock fund? Explain.Suppose you manage an equity fund with the following securities. Use the following data to help build an active portfolio. 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 Information Ratio 0.1026 0.1250 0.1416 Alpha/Residual Variance 0.877 2.604 1.253 Market Data S&P 500 Treasury Bills Expected Raturn 12.00% 2.50% Standard Deviation 20.00% 0.00% Required: Using the information in the table above, please first calculate the initial weight of each stock in an active portfolio, using the Treynor Black approach. Then adjust each weight for beta. (Use cells A5 to D14 from the given information to complete this question.) Treynor-Black Model Vogt Industries Isher Corporation Hedrock, Incorporated…Question FiveAs an investment analyst you have been asked to evaluate three mutual funds with the followingcharacteristicsMega Fund: This invests in money market instruments and the shares of blue-chip companies listedon the stock market.Bega Fund: This is a balanced fund which invests in shares of financial institutions and corporatebonds in equal proportion.Diva Fund: This is an index tracking fund which invests in all the shares of the companies listed onthe stock exchange. It was set up to mimic the Ghana Stock Exchange All-Share Index.The information relating to the three funds for the last five years is provided below:Year Mega Fund Bega Fund Diva Fund1 33.60 27.90 14.702 18.30 -15.20 31.403 18.60 15.40 -13.304 -12.30 11.10 18.305 28.70 28.70…
- please dont provide annswer in image format thank you Question content area top Part 1 Calculate the 95% confidence intervals for the four different investments included in the following table. S&P TSX Composite Index S&P 500 Index in CAD Long-Term Gov't of Canada Bonds Canadian Treasury Bills Average Return (%) 10.31 11.84 7.38 5.39 Standard Deviation of Returns (%) 16.24 18.27 10.09 4.21 Question content area bottom Part 1 The 95% confidence interval of the S&P TSX Composite Index is between enter your response here% and enter your response here%. (Round to two decimal places. Use ascending order.)You are tasked with comparing two Icelandic equity funds. The other fund is called the RU IS Equity Fund (RIS). The other fund is called HÍ IS Equity Fund (HIS). It is known that the funds had the following ratios in certain shares over the period 2018 to 2021 (it is not assumed that they received dividends during the period). The proportions did not change over the period. The price of individual shares over the period can be found in the red box down below the text. a) What was the average annual return of RIS and HIS over the periodAs 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 a. If the risk-free rate is 3.9 percent and the expected market risk premium (£(RM) -RFR} is 6.1 percent, calculate the expected return for each mutual fund according to the CAPM. b. Using the estimated expected returns from part (a) along with your own return forecasts, demonstrate whether Fund T and Fund U are currently priced to fall directly on the security market line (SML), above the SML, or below the SML. c. According to your analysis, are Funds T and U overvalued, undervalued, or properly valued?