Open-end Fund A has 150 shares of Comcast valued at $20 each and 40 shares of The Tea Therapy valued at $35 each. The fund has 400 shares outstanding. If the price of Comcast increases to $22 and the price of The Tea Therapy decreases to $32 dollars, how does that impact the NAV of the fund? (Final answer will be in percentage terms.) Multiple Choice

Open-end Fund A has 150 shares of Comcast valued at $20 each and 40 shares of The Tea Therapy valued at $35 each. The fund has 400 shares outstanding. If the price of Comcast increases to $22 and the price of The Tea Therapy decreases to $32 dollars, how does that impact the NAV of the fund? (Final answer will be in percentage terms.) Multiple Choice

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter3: Data Visualization

Section: Chapter Questions

Problem 6P: The file MutualFunds contains a data set with information for 45 mutual funds that are part of the...

See similar textbooks

Similar questions

The file MutualFunds contains a data set with information for 45 mutual funds that are part of the Morningstar Funds 500. The data set includes the following five variables: Fund Type: The type of fund, labeled DE (Domestic Equity), IE (International Equity), and FI (Fixed Income) Net Asset Value (): The closing price per share Five-Year Average Return (%): The average annual return for the fund over the past five years Expense Ratio (%): The percentage of assets deducted each fiscal year for fund expenses Morningstar Rank: The risk adjusted star rating for each fund; Morningstar ranks go from a low of 1 Star to a high of 5 Stars. a. Prepare a PivotTable that gives the frequency count of the data by Fund Type (rows) and the five-year average annual return (columns). Use classes of 09.99, 1019.99, 2029.99, 3039.99, 4049.99, and 5059.99 for the Five-Year Average Return (%). b. What conclusions can you draw about the fund type and the average return over the past five years?
Open-end Fund A has 187 shares of ATT valued at $46 each and 41 shares of Toro valued at $86 each. Closed-end Fund B has 86 shares of ATT and 83 shares of Toro. Both funds have 1,000 shares outstanding.a. What is the NAV of each fund using these prices? (Round your answers to 3 decimal places. (e.g., 32.161))b. If the price of ATT stock increases to $47.25 and the price of Toro stock declines to $83.292, how does that impact the NAV of both funds? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))c. Assume that another 166 shares of ATT valued at $46 are added to Fund A. The funds needed to buy the new shares are obtained by selling 630 more shares in Fund A. What is the effect on Fund A’s NAV if the prices remain unchanged from the original prices?
A closed-end fund starts the year with a net asset value of $31. By year-end, NAV equals $33.00. At the beginning of the year, the fund is selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 8% discount to NAV. The fund paid year-end distributions of income and capital gains of $3.40. Required: a. What is the rate of return to an investor in the fund during the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What would have been the rate of return to an investor who held the same securities as the fund manager during the year? (Round your answer to 2 decimal places.)
The Wildwood Fund sells Class A shares with a front-end load of 3.5% and annual operating expenses of 1%. Class B Shares have a 12b-1 fees of 1.5% annually and annual operating expenses of 0.75%. You plan to sell the fund after 7 years. Assume a 10% annual return. Assume that your initial investment is $100. Is Class A or Class B the better choice? Group of answer choices Class A is the better choice Cannot determine the answer from the information given Neither one is better Class B is the better choice
Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.65%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and has an expense ratio of 0.35%. Assume the rate of return on both funds’ portfolios (before any fees) is 7% per year. Required: How much will an investment of $100 in each fund grow to after 1 year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Investment Values Loaded Up Fund Economy Fund How much will an investment of $100 in each fund grow to after 4 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Investment Values Loaded Up Fund Economy Fund How much will an investment of $100 in each fund grow to after 11 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Investment Values Loaded Up Fund Economy Fund
The Wildwood Fund sells Class A shares with a front-end load of 3.5% and annual operating expenses of 1%. Class B Shares have a 12b-1 fees of 1.5% annually and annual operating expenses of 0.75%. You plan to sell the fund after 7 years. Assume a 10% annual return. Assume that your initial investment is $100. What is Class A's ending value? Group of answer choices 163.32 177.66 176.41 181.46 152.14
The Wildwood Fund sells Class A shares with a front-end load of 3.5% and annual operating expenses of 1%. Class B Shares have a 12b-1 fees of 1.5% annually and annual operating expenses of 0.75%. You plan to sell the fund after 7 years. Assume a 10% annual return. Assume that your initial investment is $100. What is Class B's ending value? Group of answer choices 179.57 156.09 165.94 168.62 146.69
A closed-end fund starts the year with a net asset value of $12.00. By year-end, NAV equals $12.70. At the beginning of the year, the fund was selling at a 4% premium to NAV. By the end of the year, the fund is selling at a 4% discount from NAV. The fund paid year-end distributions of income and capital gains of $1.30. a. What is the rate of return to an investor in the fund during the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What would have been the rate of return to an investor who held the same securities as the fund manager during the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
You have $15,000 to invest in a mutual fund. You choose a fund with a 3.5 percent front load, a 1.75 percent management fee, and a 0.5 percent 12b-1 fee. Assume, for simplicity, that the management and 12b-1 fees are charged on year-end assets. The gross annual return on the fund's shares was 12.50 percent. What was your net annual rate of return to the nearest basis point? a. 9.97% b. 6.12% c. 9.25% d. 5.42% e. 8.56%
An investor is considering two mutual funds. Fund A has a 5.75 percent front-end load and a 1.25 percent expense ratio. Fund B is no-load but has a 2.25 percent expense ratio. If the investor plans on being in either fund for six years, which should they choose given that they have $16,000 to invest and both funds have gross returns of 12 percent per year? Fees are applied at each year-end to year-end asset values, but the load is taken out up front only once.
A closed-end fund starts the year with a net asset value of OMR10. By year end, NAV equals OMR10.10. At the beginning of the year, the fund was selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 6% discount to NAV. The fund paid year end distributions of income and capital gains of OMR2.50. What is the rate of return to an investor in the fund during the year?
A closed-end fund starts the year with a net asset value of $12.00. By year-end, NAV equals $12.10. At the beginning of the year, the fund was selling at a 2% premium to NAV. By the end of the year, the fund is selling at a 7% discount to NAV. The fund paid year-end distributions of income and capital gains of $1.50.a. What is the rate of return to an investor in the fund during the year?b. What would have been the rate of return to an investor who held the same securities as the fund manager during the year?