Reconsider the Fingroup Fund in the previous problem. If during the year the portfolio manager sells all of the holdings of stock D and replaces it with 200,000 shares of stock E at Php50 per share and 200,000 shares of stock F at Php25 per share, what is the portfolio turnover rate?

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A: The Holding period returns: The returns earned on an asset between the time it was purchased and…

Q: The composition of the Fingroup Fund portfolio is as follows:   Stock Shares Price A   200,000   $…

A: PORTFOLIO TURNOVER RATE FORMULA: Portfolio turnover =minmum of sold or purchasesNAV

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

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A: NAV = Mutual fund value / Outstanding share   Return = [ NAV1 - NAV0 + Income Distributions +…

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A: The question is based on the concept of mutual fund

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A: CAPM (capital asset pricing model) equation is useful to find the required return of a…

Q: portfolio

A: Formula to calculate the portfolio turnover rate is: Portfolio turnover rate = Value of assets sold…

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A: Required return = Rf + Beta (Rm- Rf) Where, Rf = Risk free return  Rm = Market return  9.70 = 2.2 +…

Q: What should be the average beta of the new stocks added to the portfolio? Negative value, if any,…

A: Capital asset pricing model establishes a relationship between systematic risk and return. It shows…

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

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A: The question is based on the concept of portfolio management.

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

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A: Investors invest their funds to get some return. Return means earn additional amount on invested…

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A: Given, Expected return= 19% Standard deviation = 10.3%

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A: Given, The return is 15% The standard deviation SD is 5.1 percent

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A: Formula used is as follows: Required rate of return = Rf + Beta * (Rm - Rf)

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A: Weight in stock 1 = [200000 / (200000 + 100000 + 100000)] = 0.5 Weight in stock 2 = [100000 /…

Q: The Swadhinota open end mutual fund is being sold for Tk.47.85 per share. The fund includes Tk.540…

A: Fund NAV = (Securities & Assets Owned by funds - Fund Liabilities) / Number of shares…

Q: The Blackwell mutual fund has a stock portfolio that are consists of the following companies. Stock…

A: stock proportional in the portfolio beta Gazprom 0.25 1.4 Shell 0.3 1.6 Exxon Mobil 0.3 1.5…

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Q: The Closed Fund is a closed-end investment company with a portfolio currently worth $245 million. It…

A: NAV of the fund = (Portfolio Value - Liabilities) / No. of shares outstanding

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Q: Consider a no - load mutual fund with $ 500 million in assets , 50 million in debt , and 12 million…

A: Solution detail at the start of the year asset $500 million Solution Step (1) Debt $50 million Share…

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

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Q: The portfolio manager of the TTY Fund, a $5 million hedge fund that contains the following stocks.…

A: The first step is to calculate the weight of each stock in the portfolio

Q: Consider a no-load mutual fund with $457 million in assets and 12 million shares at the start of the…

A: The term net asset value or NAV is the price per share of the securities of the mutual funds that…

Q: The Closed Fund is a closed-end investment company with a portfolio currently worth $170 million. It…

A: Net asset value = (Current value - Liabilities) / Shares outstanding Net asset value =($170 - $6) /…

Q: A portfolio manager is holding the following investments: Stock Amount Invested Beta X RM10 million…

A: Risk free rate = 5% Market Risk Premium = 5.5% Beta of X = 1.4  Beta of Y = 1.0 Beta of Z = 0.8

Q: NAV

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Q: mutual fund manager has a $20 million portfolio with a beta of 1.7. The risk-free rate is 4.5%, and…

A: Portfolio Beta New Required return = Risk free return × portfolio beta( Market return - Risk free…

Q: A mutual fund manager has a $20 million portfolio with a beta of 2.7. The risk-free rate is 5.5%,…

A: Current fund value = $20 million Beta of the portfolio = 2.7 Rf = 5.5% (Rm - Rf) = 7%