Suppose money invested in a hedge fund earns 1% per trading day. There are 250 trading days per year. What will be your annual return on $100 invested in the fund if the manager allows you to reinvest in the fund the 1% you earn each day?

Q: An investor has $45,000 to invest. He wants to diversify his portfolio by putting dividing the money…

A: Hence, the investment made in bond in $12,000. It is assumed that investment in bonds is X, thus…

Q: Maryse has invested $1000 into mutual fund at a 5% annual rate of return, compounded daily. What are…

A: Nominal interest rate is the stated interest rate on the fund, whereas effective interest rate is…

Q: Portfolio managers are frequently paid a proportion of the funds under management. Suppose you…

A: Data given:: a)Portfolio value at the end of year = $ 116 million b)Dividend yield = 6.6% = 0.066…

Q: You are considering an investment in a mutual fund with a 4% load and expense ratio of 0.5%. You can…

A: Concept. Mutual fund is professionally managed fund. Hence various expenses are incurred to manage…

Q: You are considering investing $1,000 in an investment fund at the end of every quarter for the next…

A: As per the time value of money concept, a certain amount held today is worth more than holding the…

Q: An investor puts $2,000 into a deposit account with a fixed rate of return of 10% per year. A second…

A: The aggregate investment made by the investor will be considered as portfolio with $2,000 investment…

Q: You have $16,000 to invest in a mutual fund with an NAV = $45. You choose a fund with a 4 percent…

A: Rate of return is the annual income generated from the investment expressed in percentage terms.

Q: A company plans to place money in a new venture capital fund that currently returns 10.7% per year,…

A: Effective annual interest rate(EAR) refers to the real rate of return that we earn on our savings or…

Q: Suppose you invest $2000 into a mutual fund that is expected to earn a rate of return of 11%. The…

A: Investment (PV) = $2000 Rate of return (r) = 11%

Q: You are a fixed term interest rate portfolio manager and have been advised that cash inflows for the…

A: Time-weighted rate  (TWR) is a method for finding compounded return of an investment divided into…

Q: Amen invested GHC200 in a hedge fund at an annual interest of rate of 15%, if he is expected to…

A: Given information : Initial investment 200 Annual interest rate 15% Expected amount 1220…

Q: Suppose that $18,000 is invested in a bond fund and the account grows to $23,344.74 in 5 yr. a. Use…

A: Continuously compounded interest rate is the interest which is calculated on the principal amount as…

Q: expected return and volatility​ (

A: Expected return refers to the profit or loss that an investor should earn from an investment that…

Q: Now imagine that you bought a mutual fund that had a beginning NAV of $10 per share. It paid…

A: NAV refers to the net asset value of the mutual fund. Given that;Beginning NAV is $10Dividends paid…

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: If we were to invest $10,000 in an S&P 500 index fund, pay 0.2% annual fees,and add $100 a month…

A: Computation:

Q: Larry James is planning to invest $25,400 today in a mutual fund that will provide a return of 0.10…

A: We need to find the future value of investment of Mr.Larry James. Future value is the amount reccive…

Q: Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a(n) 6% interest rate…

A: Actual amount I have is $10,000 Borrowed amount is $10,000 Interest rate is 6%(on borrowed amount)…

Q: You are going to invest in a stock mutual fund with a front-end load of 4.5 percent and an expense…

A: Calculation of annual returns:Answer:The annual returns at 2 year and at 8th year is 6.08% and…

Q: Suppose that you initially invested $10,000 in the Stivers mutual fund and $5,000 in theTrippi…

A: Holding Period Return = (Value at end - Investment)/Investment Holding Period Return =…

Q: An investor purchases a mutual fund for $60. The fund pays dividends of $1.20, distributes a capital…

A: A mutual fund is a company that pools money from many investors and invests the money in securities.

Q: A good stock-based mutual fund should earn at least 7% per year over a long period of time. Consider…

A: 1982 investment = $37,500 2007 investment = $150,000 Interest rate = 7%  Time period = 2007 - 1982 =…

Q: An investor with a leverage ratio of 5 who can invest in a fund with a yield of 10% per year and can…

A: The question is based on the concept of leveraged portfolio return with borrowing.

Q: Suppose you are the money manager of a $3.92 million investment fund. The fund consists of four…

A: Computation of portfolio beta: Hence, the portfolio beta is 0.71. Working note:

Q: se you have $100,000 in cash, and you decide to borrow another $25,000 at a 6% interest rate to…

A: The expected return is the return of the portfolio which is the sum of each potential return that is…

Q: If an investor buys shares in a no-load mutual fund for $33 and after eight years the shares…

A: Mutual funds refer to one type of financial vehicle that pools money from many investors and invests…

Q: your retirement portfolio comprises 200 shares of the s&p 500 fund (SPY) and 100 shares of…

A: The question is based on the concept of calculation of rate of return on investment. The return can…

Q: A hedge fund adopts the 2/20 regime for managers' compensation. It also adopts the T-bill return as…

A: In hedge funds, the 2/20 regime is the compensation structure of hedge fund managers which consists…

Q: If an investor buys shares in a no-load mutual fund for $30 and after five years the shares…

A: The question is based on the concept of Security valuation

Q: Suppose money invested in a hedge fund earns 1% per trading day. There are 250 trading days per…

A: Annual rate of return refers to the return earned on an investment in a year. Annual rate of return…

Q: Peter has $30,000 to invest in a mutual fund whose annuai returns are normally distributed with a…

A: Total amount is $30000 Mean is 5.93% Standard deviation is 3.55%

Q: s first 10 years a mutual fund produced an average annual return of 20.77%. Assume that money…

A: The time period or the number of years (NPER) refers to the time it would require for the investment…

Q: If an investor buys shares in a no-load mutual fund for $40 and after eight years the shares…

A: The application of interest to a principal balance of a debt is known as compound interest.

Q: If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years? How…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: ave $375,000 in​ cash, and you decide to borrow another $63,750 at a 7% interest rate to invest in…

A: The overall return earned over a duration of time from owning an asset or a portfolio of assets is…

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: 1. What is the required rate of return on the initial P20M investment?   2. What is the rate of…

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

Q: 1. If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years?

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: . An investor buys a 150 TL investment fund from the bank and sells it for 165 TL after 25 days.…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: if you invested $3,580 in a mutual fund and 14 years later it's worth $9,247, what annual rate of…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: 1. PIMCO Equity Fund has a 3% load. Annual fees are 0.35%, and the expected average annual return…

A: Investment means engaging your funds to generate income for the coming years. There are various…

Q: A good stock-based mutual fund should earn at least 10% per year over a long period of time.…

A: Mutual Fund It is a professional managed fund which pools money from different investors and invest…

Q: Your objective is to have $25,650 in exactly 15 years. Today you invest $9,000 in a Schwab…

A: Amount after 7 years=$9000×(1+rate)n Where, Rate=6.1%N=7Amount=$9000×(1.061)7=18919.85

Q: A good stock-based mutual fund should earn at least 10% per year over a long period of time.…

A: Mutual Fund is a professionally managed fund made up of a pool of money collected from many…

Q: Suppose you invest $5,000 into a mutual fund that is expected to earn a rate of return of 7%. The…

A: Mutual Fund is an investment option where large number of investors put their investment amount…

Q: You buy a mutual fund for $1,000. It annually distributes $60 for eight years, after which you sell…

A: Expected rate of return can be described as the total profit or loss on a particular investment over…

Q: At age 28 you invest P 25,000 into a mutual fund. If the fund averages a 7% annual return, your…

A: Given, the amount invested is P25,000. Annual return is 7% Present age is 28.

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

A: Working note: