Jake has $285,000 to invest. He chooses one money market fund that pays 6.5% and a mutual fund that has more risk but has averaged 17.0% per year. If his goal is to average 8.6% per year with minimal risk, how much should he invest in each fund? A- Jake should invest $____in the money market fund that pays 6.5% 9 (Simplfy your answer)
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Jake has $285,000 to invest. He chooses one
A- Jake should invest $____in the money market fund that pays 6.5% 9 (Simplfy your answer)
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- Investor Matt has $661,000 to invest in a CD and a mutual fund. The CD yields 7.3% and the mutual fund yields an average of 7.7%. The mutual fund requires a minimum investment of $20,000, and Matt requires that at least 4 times as much money be invested in the CD as in the mutual fund. You must invest in order to maximize his return. What is the maximum return? Enter 0 if no investment can be made satisfying the requirements. $ . Round to the nearest cent.Investor Dan has $740,000 to invest in a CD and a mutual fund. The CD yields 3.6% and the mutual fund yields an average of 8.4%. The mutual fund requires a minimum investment of $19,000, and Dan requires that at least 4 times as much money be invested in the CD as in the mutual fund. You must invest in order to maximize his return. How much should you invest in the CD? Enter 0 if no investment can be made satisfying the requirements. $ . Round to the NEAREST CENT.Your younger brother is very concerned about investment performance, but he is willing to tolerate some risk. He decides to invest $100,000 in a mutual fund that will earn 10% per year. The proceeds will be accumulated as a lump sum and paid out at the end of year 10. Based on the data given below under Note. what is today’s purchasing power equivalent of your younger brother’s investment? Note: Your older brother is concerned more about investment safety than about investment performance. For example, he has invested $100,000 in safe 10-year corporate AAA bonds yielding an average of 6% per year, payable each year. His effective income tax rate is 33%, and inflation will average 3% per year.
- As a wealthy individual investor, you are planning to invest your $2 million in a fund of funds which invests in 2 different hedge funds, namely hedge fund A and B. The incentive fees are 20% for all funds including the fund of funds. The incentive fee is applicable when a fund earns a positive return. Let’s assume that funds A and B generate 10% and -15% gross returns, respectively. Given the information above, please fill out the below table. You can copy and paste the table to the answer section and fill it out there. You may want to show your calculations in the space below the table. Fund A Fund B Fund of Funds Start of year (millions) $1.00 $1.00 $2.00 End of year (millions) $ $ $ Gross rate of return % % % Incentive fee (millions) $ $ $ End of year, net of fee $ $ $ Net rate of return % % %An investor has $80,000 to invest in Certificates of Deposit (CD) and a mutual fund. The CD yields 7% and the mutual fund yields 8%. The mutual fund requires a minimum investment of $8,000 and the investor requires at least twice as much should be invested in CDs as in the mutual fund. How much should be invested in each to maximize the return? What is the maximum return? Show your work and explanations setting this problem up. Variables should clearly be defined. Show all your work.David Nash has $100,000 to invest in a mutual fund.a. How many shares can he purchase in a no-load mutual fund whose net assetvalue (NAV) is $50 per share?b. How many shares can he purchase in a loaded mutual fund whoseNAV is $50 per share and that has a front-loaded sales charge of5 percent?
- Suppose you consider investing $1,000 in a load fund which charges a fee of 2%, and you expect the fund to earn 14% over the next year. Alternatively, you could invest in a no-load fund with similar risk that is expected to earn 9% and charges a 1/2 percent redemption fee. Which is better and by how much? a. Funds are equal b. Load fund by $32.65 c. Load fund by $50.55 d. No-load fund by $64.55 e. No-load fund by $44.30Samantha is the money manager of a R4 000 000 investment fund. The fund consists of four shares with the following investments and betas Share. Investment Beta Class A share R400 000 1,50 Class B share R600 000 -0,50 Class C share R1 000 000 1,25 Class D share R2 000 000 0,75 If the market required rate of return is 14% and the risk-free rate is 6%, what is the fund’s required rate of return? 1. 11,90% 2. 12,10% 3. 13,30% 4. 14,67%You unexpectedly earn $1,200. Instead of blowing through the money, you decide to invest it in a mutual fund which earns 4.0% compounded annually. You would like to know how long you will need to keep the money invested for your investment to grow to $66,000. What would you need to enter in Excel to help you answer this question? =NPER(4.0%, -1200, 66000) =NPER(0.04, 0, -1200, 66000) =NPV(0.04, -1200, 66000) =NPER(4.0%, 0, 1200, 66000)
- An investor has $80,000 to invest in a CD and a mutual fund. The CD yields 6% and the mutual fund yields 5%. The mutual fund requires a minimum investment of $9,000, and the investor requires that at least twice as much should be invested in CDs as in the mutual fund. How much should be invested in CDs and how much in the mutual fund to maximize the return? What is the maximum return?You have invested P100,000 in a mutual fund that promises to pay 8% each year. You will keep this for 10 years and then cash out the total value. The cost to close the mutual fund account by then is expected to be P5,000. If your minimum return from this investment is 7%, compute for your valuation of the mutual fund. (complete and clear solution)Five years ago, you invested in the Future Investco Mutual Fund by purchasing 1,300shares of the fund at the price of $17.44 per share. Because you did not need the income, you elected to reinvest all dividends and capital gains distributions. Today, you sell your 1,550 shares in this fund for $21.78 per share. If there were a 3% load on this fund, what would your rate of return be?