Answered: The New Fund had average daily assets…

The New Fund had average daily assets of $2.2 billion last year. The fund sold $400 million worth of stock and purchased $500 million during the year. What was its turnover ratio?

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

Chapter2: Descriptive Statistics

Section: Chapter Questions

Problem 17P: Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual...

See similar textbooks

Related questions

Q: Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to…

A: AFN = Projected increase in assets – spontaneous increase in liabilities – any increase in retained…

Q: At the start of the year, you invest pay 4% of your initial wealth as commissions (called front-end…

A: Mutual fund have expenses that reduces the overall return on the mutual fund.

Q: A $20 million fund with 10% incentive fees and 1% management fees that lasts 4 years, earns a profit…

A: Hurdle rate: It is the minimum return that is required by an investor on an investment project.

Q: On Sept 1, 2010, a fund had $180,000. On Feb 1, 2011, the fund balance was $175,000 and a withdrawal…

A: Time weighted average return is performance measure for a fund, it doesn't consider the inflows and…

Q: Chachagogo, Inc. is planning its operations for next year, and the CEO wants you to forecast the…

A: AFN = Increase in assets - Increase in liabilities - Increase in retained earnings

Q: wildhorse funds has 11.2 millions shares outstanding the funds portfolio is now valued at 322…

A: Net asset value is the net realisable value of the fund. Total NAV = Value of investments - total…

Q: An investor invested $50,000 at the beginning. He received the following cash flows from the…

A: IRR stands for internal rate of return. It is the rate at which net present value of project is 0.…

Q: Last year David McCullough of La Junta, CO, bought the XYZ mutual fund, which has total assets of…

A: net asset value = total asset-total liabilitiesshares outstanding

Q: $1,000 is invested in a fund at the beginning of the year. The fund rate of return is 8% for the…

A: Investment amount = $1000 Interest rate is divided semi annually First half year, Interest rate = 8%…

Q: Wanbay Corporation is interested in estimating its additional financing needed to support a growth…

A: Additional Financing Needed (AFN) is a techniques used by corporates to understand the amount of…

Q: Chachagogo, Inc. is planning its operations for next year, and the CEO wants you to forecast the…

A: answer with calculation are as follows

Q: Last year’s current assets P65,000 Last year's accruals…

Q: Hayle Corporation has 800,000 common shares outstanding. The capital budget for the upcoming year is…

A: Number of shares that must be sold to obtain the needed funds = capital budget for the upcoming year…

Q: Cognana fund has 9.8 million shares outstanding. The fund’s portfolio is now valued at $500 million,…

A: Net asset value of a fund is popularly called as NAV. It is the per unit market value of all the…

Q: The New Fund had average daily assets of $3.9 billion last year. The fund sold $540 million worth of…

A: Turn over ratio is the ratio of total fund sold to average daily assets. It is used to calculate the…

Q: The following information applies to Old Blues Advisors, a hedge fund: $288 million in assets under…

A: Data Given:: AUM as of prior -year-end $288 million Current year…

Q: A closed-end fund starts the year with a net asset value of $12.00. By year-end, NAV equals $12.10.…

A: Rate of return represents the gain or loss in terms of percentage which an investor is expected to…

Q: Richard invested $750,000 in a hedge fund with a 2/20 fee structure. The fund had a total of $15…

A: Richard will pay his share of the performance fee based on the profits realized by the fund after…

Q: The cashflow below represents the amount invested by a company into a special purpose fund starting…

A: The purchasing power will be the future value of the cash flows at the market rate of interest and…

Q: Lannie Industries is planning its operations for next year. Lannie Bells, the CEO, wants you to…

A: Changes in sales = Last year’s sale * Sales growth rate = 350 * 30% = 105 Current year sales =…

Q: Consider a mutual fund with $200 million in assets at the start of the year and 10 million shares…

A: Given information in question Mutual fund worth = $200 million Outstanding…

Q: Dynabase Tool has forecast its total funds requirements for the coming year as shown in the…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: A fund of about P5 million is to be created by 40 quarterly payments at the rate of 4% compounded…

A: The process involving setting aside a common amount after each period in an interest generating…

Q: A closed-end fund starts the year with a net asset value of OMR10. By year end, NAV equals OMR10.10.…

A: Closed-end funds are investment companies whose equity or ETF shares are exchanged in the free…

Q: WorldTrans Industries is planning its operations for next year. The CEO, wants you to forecast the…

A: AFN is the concept used in Business which are looking to expand its operations and influence. When a…

Q: Lannie Industries is planning its operations for next year. Lannie Bells, the CEO, wants you to…

A: SOLUTION- FORECASTED SALES = LAST YEAR SALES * SALES GROWTH RATE .…

Q: For the same two funds discussed in Q2 the ending wealth after five years was $1.2438 per dollar…

A: A compound annual growth rate(CAGR) is the method in which we calculate the total return from an…

Q: A fund begins with $10 million and reports the following three-month results (with negative figures…

A: Return on investment: In a very generic sense, returns on an investment refer to the gains or losses…

Q: What was its turnover ratio?

A: A turnover ratio represents the quantity of property or liabilities that a business enterprise…

Q: Dynabase Tool has forecast its total funds requirements for the coming year as shown in the…

A: Months Total funds requirements ($) ** Permanent fund requirement ($) # Seasonal Fund…

Q: The New Fund had average daily assets of Php2.2 billion in the past year. The fund sold Php400…

A: Turnover ratio = Total Stock sold / Total stock held

Q: The New Fund had average daily assets of $3.2 billion in the past year. The fund sold $500 million…

A: a.Given,Average Daily Assets = $3,200,000,000Fund Sold = $500,000,000a.Given,Average Daily Assets =…

Q: Chachagogo, Inc. is planning its operations for next year, and the CEO wants you to forecast the…

A: As per Bartleby guidelines, more than 1 independent question has been asked. First question only…

Q: $1,000 is invested in a fund at the beginning the year. The fund rate of return is 8% for the first…

A: The money weighted return used the IRR method of return computation, while the time weighted return…

Q: Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV equaled…

A: The calculation of the pre-tax rate of return as follows:

Q: BJI Funds is a hedge fund with a value of $110 million at initiation. BJI Funds charges a 2%…

A: Hurdle rate is the minimum acceptable rate of return for an investment. High water mark - Highest…

Q: Harlequin Capital is a hedge fund with $250 million of initial capital. Harlequin charges a 2%…

A: Hurdle income = Hurdle rate * AUM beginning of year Base for incentive fees = Net income after…

Q: An investor has at most $10,000 to invest in government bonds, mutual funds, and money market funds.…

A: A government bond is a debt security issued by government bodies to raise long-term debt funds. A…

Q: 20)Corporate fund started the year with a net asset value of GHS12.25. By year-end, its NAV equaled…

A: Given Information:Net asset value at beginning (NAV0) is 12.25 Net asset value at the end (NAV1) is…

Q: return

A: Formulas: a) Rate of return to an investor is: (1-sale @ year end)NAV1 - (1+sale at year…

Question

The New Fund had average daily assets of $2.2 billion last year. The fund sold $400 million worth of stock and purchased $500 million during the year. What was its turnover ratio?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Calculation of the Turnover ratio is as follow:

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

The New Fund had average daily assets of $3.2 billion in the past year. The fund sold $500 million and purchased $500 million worth of stock during the year. a. What was its turnover ratio? b. If the fund had an expense ratio of 1.1%, what were the total fees paid to the fund's investment managers?
The New Fund had average daily assets of $3.6 billion in the past year. The fund sold $414 million and purchased $514 million worth of stock during the year. What was its turnover ratio? (Round your answer to 2 decimal places.)
The New Fund had average daily assets of $3.9 billion last year. The fund sold $540 million worth of stock and purchased $680 million during the year. What was its turnover ratio? (Round your answer to 1 decimal place.)
A mutual fund sold $60 million of assets during the year and purchased $78 million in assets. If the average daily assets of the fund were $256 million, what was the fund turnover?
The New Fund had average daily assets of Php2.2 billion in the past year. The fund sold Php400 million and purchased Php500 million worth of stock during the year. What was its turnover ratio?
A hedge fund with $25 million of assets under management has a standard 2/20 fee structure and earns 14 percent this year. Assume that management fees are paid at the beginning of each year and performance fees are paid at the end of each year. Assume that the fund’s fee structure also contains a high-water mark provision. What is the management fee collected by the fund managers? What is the performance fee collected by the fund managers? What is the investor’s net return?
Consider a mutual fund with $200 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2 million. The stocks included in the fund’s portfolio increase in price by 8%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1%, which are deducted from portfolio assets at year-end. What is the fund’s net asset value at the start and end of the year? What is the rate of return for an investor in the fund?
Consider a mutual fund with php200 million in assets at the start of the year and with 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of php2 million. The stocks included in the fund's portfolio increase in price by 8%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 1%, which are deducted from portfolio assets at year-end. What is net asset value at the start and end of the year? What is the rate of return for an investor in the fund?
You have a mutual fund with $100 million worth of total assets which is calculated at the end of the day after closing. It also has $10 million of cash on hand, $5 million in total receivables. It has earned $10 million of income for the day. The fund has $8 million in short-term liability and $2 million in long term liability. The fund also has 10 million shares outstanding. What is NAV?
Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV equaled $12.10. The fund paid year-end distributions of income and capital gains of $1.50. What was the (pretax) rate of return to an investor in the fund?
You pay $22,200 to the Laramie Fund, which has a NAV of $22 per share at the beginning of the year. The fund deducted a front-end load of 4%. The securities in the fund increased in value by 10% during the year. The fund's expense ratio is 1.2% and is deducted from year-end asset values. What is your rate of return on the fund if you sell your shares at the end of the year?
Richard invested $750,000 in a hedge fund with a 2/20 fee structure. The fund had a total of $15 million of assets under management and it returned 12% and 19% in the first and second years, respectively. Assume that management fees are paid at the beginning of each year and performance fees are paid at the end of each year in which they are applicable. How much will Richard pay in performance fees for the first two years, respectively?