A mutual fund holds the following assets at the beginning of the year: 8,000 shares of...

A mutual fund holds the following assets at the beginning of the year:

8,000 shares of FB, price $180

1250 shares of AMZN, price $1100

1100 shares of GOOG, price $950

The mutual fund has 910,000 number of shares issued at this point. The mutual fund has 1.2% operating expenses, 0.5% 12b-1 fees and a 4% front-end load. Expenses and fees are deducted from assets at the end of the year. At the end of the year, the assets held by the fund are worth $ 4.4m (before expenses) and there are 900,000 shares outstanding. Just before the end of the year, the fund realized $0.3m capital gains and received $0.2m dividends. What is the reported return on the fund? (Provide your answer in %, rounded to two decimals, omitting the % sign. Please show all formulae, solutions and steps.)

Expert Solution

retuen reported is 21.698. Or 21.70

jeff jeffy answered 2 years ago

A mutual fund holds the following assets at the beginning of the year: 9,400 shares of...

A mutual fund holds the following assets at the beginning of the year: 9,400 shares of FB, price $180 1250 shares of AMZN, price $1100 1100 shares of GOOG, price $950 The mutual fund has 102,000 number of shares issued at this point. The mutual fund has 1.2% operating expenses, 0.5% 12b-1 fees and a 4% front-end load. Expenses and fees are deducted from assets at the end of the year. At the end of the year, the assets held...

A mutual fund holds $2.8million worth of assets and 560,000 number of shares issued at the...

A mutual fund holds $2.8million worth of assets and 560,000 number of shares issued at the beginning of the year. The mutual fund has 1.2% operating expenses and 0.5% 12b-1 fees. Expenses and fees are deducted from assets at the end of the year. At the end of the year, the assets held by the fund are worth $ 4.4m (before expenses) and there are 800,000 shares outstanding. Just before the end of the year, the fund realized $0.3m capital...

Suppose the RedRock mutual fund holds the following long positions: Shares/Company 72,500 shares of Microsoft (MSFT)...

Suppose the RedRock mutual fund holds the following long positions: Shares/Company 72,500 shares of Microsoft (MSFT) 42,300 shares of Archer Daniels Midland (ADM) 18,320 shares of Abercrombie & Fitch (ANF) 32,000 shares of Merck (MRK) 19,000 shares of Wal-Mart (WMT) 56,400 shares of Research in Motion (RIMM) 12,500 shares of Garmin (GRMN) 15,000 shares of Goldman Sachs (GS) Current Price $25.57 $29.52 $47.06 $34.47 $53.77 $55.92 $29.36 $164.89 The fund has liabilities of $425,819 and shares outstanding equal 1,354,887. If...

At the beginning of the year, you buy 800 shares in Muleshoe Mutual Fund, which currently...

At the beginning of the year, you buy 800 shares in Muleshoe Mutual Fund, which currently has a NAV of $48.10. The fund has a front-end load of 1.8%. Over the year, the fund distributed capital gains of $1.75 per share and dividend distributions of $1.42. At the end of the year, the NAV was at $54.47 and the offer price was at $55.45. A. If you sell after one year, what is your HPR? B. Recalculate your HPR, assuming...

Consider a no-load mutual fund with $200 million in assets and 10 million shares at the...

Consider a no-load mutual fund with $200 million in assets and 10 million shares at the start of the year, and $250 million in assets and 11 million shares at the end of the year. During the year investors have received income distributions of $2 per share, and capital gains distributions of $0.25 per share. Assuming that the fund carries no debt, and that the total expense ratio is 1%, what is the rate of return on the fund? A....

Consider a mutual fund with $300 million in assets at the start of the year and...

Consider a mutual fund with $300 million in assets at the start of the year and 12 million shares outstanding. If the gross return on assets is 18% and the total expense ratio is 2% of the year-end value, then the rate of return on the fund is %. Please enter your answer with TWO decimal points.

Consider a mutual fund with $218 million in assets at the start of the year and...

Consider a mutual fund with $218 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 $4 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 1.00%, which are deducted from portfolio assets at...

Consider a mutual fund with $209 million in assets at the start of the year and...

Consider a mutual fund with $209 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 $3 million. The stocks included in the fund's portfolio increase in price by 9%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at...

Consider a mutual fund with $207 million in assets at the start of the year and...

Consider a mutual fund with $207 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 $4 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 1.00%, which are deducted from portfolio assets at...

Consider a mutual fund with $219 million in assets at the start of the year and...

Consider a mutual fund with $219 million in assets at the start of the year and with 12 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $6 million. The stocks included in the fund's portfolio increase in price by 7%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 0.50%, which are deducted from portfolio assets at...

Question