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Question
You pay $21,600 to the Laramie Fund, which has a NAV of $18 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 1.3% 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?
A. 4.35%
B. 4.23%
C. 6.45%
D. 5.63%
Answer
This answer is hidden. It contains 1 characters.
Related questions
Q:
Which of the following does not approximate the performance of a buy-and-hold portfolio strategy?
A. An equally weighted index
B. A price-weighted index
C. A value-weighted index
D. All of these options (Weights are not a factor in this situation.)
Q:
Under a "passive core" portfolio management strategy, a manager would ___________.
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B. index part of the portfolio and actively manage the rest
C. delegate the management of core segments of the portfolio to other managers
D. actively manage the entire portfolio
Q:
An active asset allocation strategy involves _________.
A. investing in the stock of companies that are price takers
B. maintaining approximately the same proportions of a portfolio in each asset class over time
C. varying the proportions of a portfolio in each asset class in response to changing market conditions
D. selecting individual securities in different sectors that are believed to be undervalued
Q:
An employee has an average wage of $60,000 and has worked for the firm for 25 years. The defined benefit pension plan pays retirees 2.5% of the average wage times the years of service. The employee can expect to receive _______ per year upon retirement.
A. $18,000
B. $37,500
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D. $55,250
Q:
For a bank, the difference between the interest rate charged to borrowers and the interest rate paid on liabilities is called the __________.
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C. risk premium
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Q:
Which one of the following would be considered a "cash equivalent" investment?
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B. Common stock
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Q:
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B. real; nominal
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Q:
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D. Determine the asset universe
Q:
The asset universe is the _____________________.
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B. existing set of assets the investment company currently owns in one or more of its portfolios
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Q:
An investor is looking at different retirement investment choices, and he is willing to accept one with upside potential even if that means sacrificing certainty. Which of the following will he most likely select?
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Q:
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II. The limitations on spending require that the fund limit its considerations to growth stocks.
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Q:
An investor with high risk aversion will likely prefer which of the following risk and return combinations?
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B. Expected return = 14%, historical standard deviation = 19%
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Q:
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A. return requirement
B. risk-tolerance
C. liquidity
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Q:
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What is the amount of the total contribution to his 403b if John contributes 5% of his own money?
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B. $8,400
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Q:
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Q:
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C. 18; 22
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Q:
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A. a bond portfolio
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Q:
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C. tax deductible; not tax deductible
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Q:
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Q:
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A. older workers
B. high-income workers
C. younger workers
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Q:
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A. income
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Q:
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Q:
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II. Durability of marriage
III. Expected length of your base (Social Security) annuity
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Q:
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A. traditional retirement plan
B. Roth retirement plan
C. 401k plan
D. 403b plan
Q:
A decrease of 1% in both your tax exemption and your income tax rate would, on net, _______________.
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B. make you worse off
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D. make you either better or worse off depending on your age
Q:
A typical hedge fund incentive bonus is usually equal to ________ of investment profits beyond a predetermined benchmark index.
A. 5%
B. 10%
C. 20%
D. 25%
Q:
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Q:
Market-neutral hedge funds may experience considerable volatility. The source of volatile returns is the use of _________.
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D. net short positions
Q:
You manage a $15 million hedge fund portfolio with beta = 1.2 and alpha = 2% per quarter. Assume the risk-free rate is 2% per quarter and the current value of the S&P 500 Index is 1,200. You want to exploit the positive alpha, but you are afraid that the stock market may fall and you want to hedge your portfolio by selling 3-month S&P 500 future contracts. The S&P contract multiplier is $250.
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D. $16,000,000
Q:
You manage a $15 million hedge fund portfolio with beta = 1.2 and alpha = 2% per quarter. Assume the risk-free rate is 2% per quarter and the current value of the S&P 500 Index is 1,200. You want to exploit the positive alpha, but you are afraid that the stock market may fall and you want to hedge your portfolio by selling 3-month S&P 500 future contracts. The S&P contract multiplier is $250.
When you hedge your stock portfolio with futures contracts, the value of your portfolio beta is __________.
A. 0
B. 1
C. 1.2
D. The answer cannot be determined from the information given.