Please show working   Please answer ALL OF QUESTIONS 1 AND 2   1. Suppose you are the money manager of a $4.95 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $   280,000                                 1.50 B 460,000                                 (0.50) C 1,260,000                                 1.25 D 2,950,000                                 0.75 If the market's required rate of return is 8% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.    2. Madsen Motors's bonds have 13 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 10%; and the yield to maturity is 5%. What is the bond's current market price? Round your answer to the nearest cent.

Q: A mutual fund manager has a $40.00 million portfolio with a beta of 1.00. The risk-free rate is…

A: Beta in above problem can be calculated by using CAPM  Expected rate of return =Risk free rate +…

Q: The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 200000 $35…

A: With the given information, we can determine the net asset value as follows:

Q: Suppose you have a project that has a 0.4 chance of tripling your investment in a year and a 0.6…

A: Answer 1. For simple purposes, let the investment amount be x equal to $1. Expected Value:…

Q: The composition of the Fingroup Fund portfolio is as follows: Stocks Shares Price 200,000 Php 35 B…

A: The Net Asset Value is the amount which a unit holder would received if the mutual fund is…

Q: Your Company, manager of the Gigantic Mutual Fund, knows that her fund currently is well diversified…

A: As per CAPM, Expected Return = Risk free rate +(beta * CAPM risk premium) Expected Return = (8%) +…

Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…

A: Portfolio is a mix or collection of the financial instruments held by an investor or financial…

Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…

A: Expected return and standard deviation of a portfolio is calculated using the below formula: Here,…

Q: Suppose you are the money manager of a $5.04 million investment fund. The fund consists of four…

A: First we need to find beta of the portfolio  Then expected return is equal to risk free rate plus…

Q: Suppose you manage an equity fund with the following securities. A client invests partially in your…

A: The expected return and the standard deviation of the portfolio: The expected return of a portfolio…

Q: What is the market Risk Premium?   a. 3% b. 7% c. 10% d. 13% Option 2

A: Market Risk Premium refers to the additional return earned above the risk free rate by the market…

Q: You manage an equity fund with an expected risk premium of 14% and a standard deviation of 54%. The…

A: The expected return is the minimum required rate of return which an investor required from the…

Q: Portfolio Required Return Suppose you manage a $4.4 million fund that consists of four stocks with…

A: Stock  investment Beta A 500000 1.5 B 650000 -0.5 C 1100000 1.25 D 2150000 0.75…

Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…

A: Formulas:

Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…

A: Standard deviation A measurement of the variation of amount/ dispersion of the set of values.

Q: A hedge fund with $1 billion of assets charges a management fee of 2% and an incentive fee of 20% of…

A: Given information in question Fund value                  =          $1 billion Management fee…

Q: Suppose you are the money manager of a $4.72 million investment fund. The fund consists of four…

A: Portfolio Fund refers to basket of stocks of different class and risk out together to maximize…

Q: A mutual fund company has cash resources of birr 200 million for investment in a diversified…

A: Linear programming (LP) model is a mathematical modelling technique used to help decision makers in…

Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…

A: Given:

Q: The Closed Fund is a closed-end investment company with a portfolio currently worth $200 million. It…

A: Part (a): Answer: Net asset value is $39.4

Q: PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4.82 million investment fund. The…

A: Portfolios are the group or combination of investments of an investor that are grouped together in…

Q: Suppose you are the money manager of a $5.16 million investment fund. The fund consists of four…

A: Frist we need to calculate portfolio beta by using this equation. Portfolio beta =weight of stock…

Q: As an equity analyst, you have developed the following return forecasts and risk estimates for two…

A: Financial statements are statements which states the business activities performed by the company .…

Q: Suppose you are the money manager of a $3.84 million investment fund. The fund consists of four…

A: Here, Total investment fund = $3.84 million Market's required rate of return = 9% Risk-free rate =…

Q: The following information applies to the questions displayed below.] A pension fund manager is…

A: Expected return of Stock fund(S) is 16% and standard Deviation is 32% Expected return of (B) is 10%…

Q: Suppose you are the money manager of an Rs.8 million investment fund. The fund consists of 4 stocks…

A: Stock Portfolio Beta- = XaBa+ XbBb+ XcBc+ XdBd = (800,000/ 8,000,000)(1.2)+ (1200,000/…

Q: A fund manager is holding the following stocks: Stock Amount Invested Beta 1 $300 million 1.2…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: A hedge fund charges a management fee of 3 percent and an incentive fee of 25 percent for all…

A: Hedge funds are actively managed investment pools whose managers employ a variety of tactics, such…

Q: Suppose you are the money manager of a $4.82 millioninvestment fund. The fund consists of four…

A: Required rate of return means minimum rate which investor want from particular investment. Different…

Q: Portfolio Required Return Suppose you manage a $4.71 million fund that consists of four stocks with…

A: Portfolio required return helps in calculating the anticipated profit and losses from portfolio of…

Q: The Knowles/Armitage (KA) group at Merrill Lynch advises clients on hoW tS make available to clients…

A: Here, Expected Return of All World Fund is 9.80% Standard Deviation of all World fund is 15%…

Q: f the market's required rate of return is 11% and the risk-free rate is 5%, what is the fund's…

A: Portfolio Beta is a measure of the overall systematic risk of a portfolio of investments. It equals…

Q: Suppose you are the money manager of a $5.39 million investment fund. The fund consists of four…

A: CAPM shows the different level of return at different level of risk. It consider market risk which…

Q: Portfolio Required Return Suppose you manage a $6 million fund that consists of four stocks with…

A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets…

Q: Suppose you are the money manager of a $4.94 million investment fund. The fund consists of four…

A: The capital asset pricing model (CAPM) refers to the model which tells us how the financial markets…

Q: If you desire to forecast performance of a mutual fund for next year, the best forecast will be…

A: Geometric average of return is the method which helps to forcast the expected returns and assess the…

Q: )As an equity analyst, you have developed the following return forecasts Problem 3 0 and risk…

A: Financial statements are statements which states the business activities performed by the company .…

Q: You currently own shares in Berkshire Mutual Fund (BMF). Your broker calls and recommends vuying…

A: The selection of the optimum portfolio is the process of identifying the efficient portfolio and…

Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…

A: Here,

Q: Net asset value (NAV) of an investment fund is calculated as total portfolio value divided by number…

A: To calculate net asset value of mutual fund we have to calculate sum of current value of T-bill ,…

Q: Suppose you are the money manager of a $4.74 million investment fund. The fund consists of four…

A: Working note: