Question

In: Accounting

In the first 5 months of this year, the Mustang Fund recorded the monthly returns set...

In the first 5 months of this year, the Mustang Fund recorded the monthly returns set out in column (2) below. The Mustang Fund was tracking the ASX 200 market index, the monthly performance of which is set out in column (3).

Month, 2020 Mustang Fund return (%) ASX 200 return (%)

(1) (2) (3)

January 6.6 5.0

February -8.9 -8.2

March -22.3 -21.2

April   7.3 8.8

May 1.8 1.2

1 + 1 + 1 = 3 marks

i) Calculate the monthly average tracking performance of the Fund.

ii) Calculate the monthly average absolute tracking performance of the Fund.

iii) Explain and compare your answers in parts i. and ii. above

Solutions

Expert Solution

Answer:

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

In the first four months of 2017, a company realized monthly returns of 1.1percent, 1.7percent, 1.5percent,...
In the first four months of 2017, a company realized monthly returns of 1.1percent, 1.7percent, 1.5percent, and 2.1percent. What is the standard deviation for those four monthly returns? A.0.32%B.0.42%C.0.52%D.0.64%E. 0.75 Year-to-date, Blue Co. had earned a 8.15percent return. During the same time period, Yellow Co. earned 12.75 percent, Orange Co. earned –6.35 percent and Purple Co. earned 19.5 percent. If you have a portfolio made up of 30 percent Blue, 25percent Yellow, 35percent Orange and the remainder in Purple,what is...
Question 1 a. Over the past twelve months, Lululemon had monthly returns of -5%, 0%, 0%,...
Question 1 a. Over the past twelve months, Lululemon had monthly returns of -5%, 0%, 0%, -5%, 0%, 0%, 10%, 15%, 10%, 0%, 0%, and 5%. What was the total return over this period? b. Suppose Shake Shack returns 10% this year and -10% next year. What is the total return over this 2-year period? Explain why this is not equal to 0%. What would the return for next year have to equal (assuming this year’s return is still 10%)...
The following monthly returns were observed on a security over 6 consecutive months: 5%, 2%, 6%,...
The following monthly returns were observed on a security over 6 consecutive months: 5%, 2%, 6%, -4%, 0% and 3%. What is the effective annual difference between the 6month geometric return and the 6-month arithmetic return?
You are analyzing the returns of a mutual fund portfolio for the past 5 years. Year...
You are analyzing the returns of a mutual fund portfolio for the past 5 years. Year Return 2014 -30% 2015 -25% 2016 40% 2017 -10% 2018 15% Question 7: Use Excel to compute the VaR at the 1% level (you can write the Excel formula as your work).
You are analyzing the returns of a mutual fund portfolio for the past 5 years. Year...
You are analyzing the returns of a mutual fund portfolio for the past 5 years. Year Return 2014 -30% 2015 -25% 2016 40% 2017 -10% 2018 15% Question 6: What is the standard deviation of the returns?   29.28% Question 7:  Use Excel to compute the VaR at the 1% level (you can write the Excel formula as your work). Answer Question 7 plz
During 2021, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returns...
During 2021, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returns of $720,000. Cost of goods sold totaled $6,360,000 (60% of sales). The company estimates that 8% of all sales will be returned. Prepare the year-end adjusting journal entries to account for anticipated sales returns under the assumption that all sales are made for cash (no accounts receivable are outstanding).
During 2021, its first year of operations, Hollis Industries recorded sales of $10,100,000 and experienced returns...
During 2021, its first year of operations, Hollis Industries recorded sales of $10,100,000 and experienced returns of $700,000. Cost of goods sold totaled $7,070,000 (70% of sales). The company estimates that 8% of all sales will be returned.Prepare the year-end adjusting journal entries to account for anticipated sales returns under the assumption that all sales are made for cash (no accounts receivable are outstanding). (If no entry is required for a transaction/event, select "No journal entry required" in the first...
During 2021, its first year of operations, Hollis Industries recorded sales of $11,100,000 and experienced returns...
During 2021, its first year of operations, Hollis Industries recorded sales of $11,100,000 and experienced returns of $800,000. Cost of goods sold totaled $6,660,000 (60% of sales). The company estimates that 9% of all sales will be returned. Prepare the year-end adjusting journal entries to account for anticipated sales returns under the assumption that all sales are made for cash (no accounts receivable are outstanding). (If no entry is required for a transaction/event, select "No journal entry required" in the first...
Jupiter Company's budget for coming year estimates monthly sales in units for first five months of...
Jupiter Company's budget for coming year estimates monthly sales in units for first five months of the year as follows: April 35,000; May, 38,000; June 40,000; July, 39,000; and August 38,000. The ending inventory of finished units for each month is to be maintained at 25% of next month's estimated sales. On April 1, there were 12,000 units on hand. a. prepare a production budget (in units) for the first four months of the period. Rounds amounts to the nearest...
Jupiter Company's budget for coming year estimates monthly sales in units for first five months of...
Jupiter Company's budget for coming year estimates monthly sales in units for first five months of the year as follows: April 35,000; May, 38,000; June 40,000; July, 39,000; and August 38,000. The ending inventory of finished units for each month is to be maintained at 25% of next month's estimated sales. On April 1, there were 12,000 units on hand. a. prepare a production budget (in units) for the first four months of the period. Rounds amounts to the nearest...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT