A hedge fund may charge a special performance fee which commonly ranges from: 10 to 15 percent of NAV. O 15 to 20 percent of the fund's profits. 20 to 30 percent of NAV. O 20 to 40 percent of the market price. 20 to 40 percent of the fund's profits.
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- A mutual fund has a current offering price of $53.21. What is the net asset value if the fund charges a 3 percent front-end load? A. $51.61 B. $51.66 C. $54.57 D. $54.86 E. $54.91Illustration 2 Annual returns for three funds and a market index are given below: Fund A Fund B 17.1 14.5 28.1 19.7 Beta(Bp) 1.20 0.92 Risk free rate= 8.6% Required: Performance evaluation of the 3 funds Rp Op Fund C 13 22.8 1.04 Rm 11 20.5 1.00Quiz Instructions Question 1 1 pts A pension fund manager is considering three assets. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill yielding 0.06. Info of the risky funds is as follows: Expected ret. std. dev. Stock fund 0.22 0.27 Bond fund 0.12 0.14 The correlation between the fund returns is 0.5. What is the expected return of the optimal risky portfolio? Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.
- 7 Check my work You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97. 1.25 points Year Fund 2018 -18.8% Market -36.5% Risk-Free 1% Skipped 2019 25.1 20.7 6 2020 13.6 13.0 2 2021 2022 7.0 -1.92 8.4 -4.2 6 2 eBook What are the Sharpe and Treynor ratios for the fund? Print Note: Do not round intermediate calculations. Round your answers to 4 decimal places. References Sharpe ratio Treynor ratio7 You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97. Year 2018 2019 2020 2021 2022 Fund -21.8% 25.1 Sharpe ratio Treynor ratio 14.1 6.4 -2.22 Market -41.5% 21.2 14.5 8.8 -5.2 Risk-Free 3% 4 2 4 3 What are the Sharpe and Treynor ratios for the fund? Note: Do not round intermediate calculations. Round your answers to 4 decimal places.If a fund has a return of 12% and a beta of 1.4, and if the risk-free rate is 2%, and market return rate is 8%, calculate Jensen's Alpha O a. 3.6 Ob. 2.4 O c. 1.6 Od. 1.4
- A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 8%. The characteristics of the risky funds are as follows: Expected Return. Stock fund (5) Bond fund (B) The correlation between the fund returns is 0.10. 19% 14 Reg A1 Standard Deviation Required: a-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds? a-2. What are the expected value and standard deviation of the minimum-variance portfolio rate of return? 31% 23 Complete this question by entering your answers in the tabs below. Reg A2 What are the expected value and standard deviation of the minimum-variance portfolio rate of return? Note: Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.If a mutual fund's net asset value is $23.60 and the fund sells its shares for $25.30, what is the load fee as a percentage of the net asset value?A hedge fund with a 1 and 15 fee structure has a hard hurdle rate of 7.45%. If the incentive fee and management fee are calculated independently and the management fee is based on beginning-of-period asset values, an investor’s net return over a period during which the grows value of the fund has increase 19.45% is closest to A. 10.85%. B. 12.65%. C. 16.65%. D. 21.74%.
- Problem 7-9 (Algo) A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the thi is a money market fund that provides a safe return of 4%. The characteristics of the risky funds are as follows: Stock fund (S) Bond fund (B) Expected Return 30% 19 The correlation between the fund returns is 0.13. You require that your portfolio yield an expected return of 12%, and that it be efficient, that is, on the steepest feasible CAL. Standard Deviation 24% 12 Required: a. What is the standard deviation of your portfollo? b. What is the proportion invested in the money market fund and each of the two risky funds? Complete this question by entering your answers in the tabs below. Required A Required B What is the standard deviation of your portfolio? Note: Round your answer to 2 decimal places. Standard deviation 12.00 %Đ The risk free rate is 3%. Calculate and rank the following funds using Jensen's Alpha, Treynor measure, Sharpe ratio and M Fund 4 5.82% Market Index 7.60% Fund 1 Fund 2 Fund 3 Return 6.45% 8.96% 9.44% 0.88 1.02 1.38 0.80 1% Beta Std. dev. 2.74% 4.54% 3.72% 2.64% 2.80%A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 8%. The characteristics of the risky funds are as follows: Stock fund (S) Bond fund (B) Expected Return 21% 13 The correlation between the fund returns is 0.13. Req A1 Required: a-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds? a-2. What are the expected value and standard deviation of the minimum-variance portfolio rate of return? Standard Deviation 36% 22 Complete this question by entering your answers in the tabs below. Req A2 What are the investment proportions in the minimum-variance portfolio of the two risky funds? Note: Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places. Portfolio invested in the stock Portfolio invested in the bond