Pls help ASAP You have been researching Canadian equity mutual funds for a new client. You come across the following information.Key indicators5-yearAnnualizedReturnQuartileRankingVolatilityManagementExpense Ratio(MER)PortfolioManager StartDateSharpe RatioChamberlainEquity Fund13.42%2Medium to High2.57%January 19860.19FontaineEquity Fund11.25%3Medium to High2.90%July 20040.05What can you conclude from this information?O Fontaine Equity Fund is a better fund because it has a higher quartile rankingChamberlain Equity Fund has lower volatility since its 5-year annualized return is higherFontaine Equity Fund has a lower risk level since its Sharpe Ratio is lower← Previc You have been researching Canadian equity mutual funds for a new client. You come across the following information.Key indicators5-yearAnnualizedReturnQuartileRankingVolatilityManagementExpense Ratio(MER)PortfolioManager StartDateSharpe RatioChamberlainEquity Fund0 013.42%2Medium to High2.57%January 19860.19FontaineEquity Fund11.25%3Medium to High2.90%July 20040.0527What can you conclude from this information?Fontaine Equity Fund is a better fund because it has a higher quartile rankingChamberlain Equity Fund has lower volatility since its 5-year annualized return is higherO Fontaine Equity Fund has a lower risk level since its Sharpe Ratio is lowerFontaine Equity Fund's higher MER contributes to its lower 5-year annualized return.

Sharpe, is a measure used to calculate the risk-adjusted return on an investment portfolio. It is a…

Key indicators 5-year Annualized Return Quartile Ranking Volatility Management Expense Ratio (MER) Portfolio Manager Start Date Sharpe Ratio Chamberlain Equity Fund 13.42% 2 Medium to High 2.57% January 1986 0.19 Fontaine Equity Fund 11.25% 3 Medium to High 2.90% July 2004 0.05

Key indicators 5-year Annualized Return Quartile Ranking Volatility Management Expense Ratio (MER) Portfolio Manager Start Date Sharpe Ratio Chamberlain Equity Fund 13.42% 2 Medium to High 2.57% January 1986 0.19 Fontaine Equity Fund 11.25% 3 Medium to High 2.90% July 2004 0.05

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose you manage an equity fund with the following securities. Use the following data to help build an active portfolio. Input Data Vogt Industries Isher Corporation Hedrock, Incorporated Alpha 0.012 0.006 0.016 Beta 0.277 1.015 1.630 Standard Deviation 0.156 0.168 0.181 Residual Standard Deviation 0.117 0.048 0.113 Information Ratio 0.1026 0.1250 0.1416 Alpha/Residual Variance 0.877 2.604 1.253 Market Data S&P 500 Treasury Bills Expected Raturn 12.00% 2.50% Standard Deviation 20.00% 0.00% Required: Using the information in the table above, please first calculate the initial weight of each stock in an active portfolio, using the Treynor Black approach. Then adjust each weight for beta. (Use cells A5 to D14 from the given information to complete this question.) Treynor-Black Model Vogt Industries Isher Corporation Hedrock, Incorporated…
The Solace Fund Burrfoot Enterprises Majere Brothers Incorporated Uth Matar Limited Lance Medical Supplies Burrfoot Enterprises Majere Holdings Uth Matar Limited Lance Medical Supplies Total Fund Performance Holding Period Return 58.33% 22.61% -6.95% 5.75% =B5*C5 Required: Using the information in the tables above, please calculate the contribution each stock makes to the portfolio performance. Then calculate overall portfolio performance. (Use cells A3 to C6 from the given information to complete this question.) The Solace Fund Contribution to Portfolio Return 8.75% 6.78% -1.39% Portfolio Weight 2.01% 15% 30% 20% 35%
Consider the information below on 3 mutual funds: Fund Fund Return Beta S 14.05 % 1.19 D 17.05 % 1.44 M 13.65% 0.98 During the same time period, the return on the market stock index (rM) was 12.35% and the risk - free rate ( rRF) was 2.25%. Based on this information, which statement below is Correct? Group of answer choices After adjusting for risk, mutual fund S outperformed the other two funds. On a risk - adjusted basis, all of the mutual funds had a postive Alpha. After adjusting for risk, mutual fund M outperformed the other two funds. Mutual fund D had the best Treynor ratio for the period.
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 .97. Year 2015 2016 2017 2018 2019 Fund -15.06% 25.10 12.60 6.60 -1.32 Market -26.50% 19.70 10.00 7.60 -2.20 Jensen's alpha Information ratio Risk-Free 3% 5 2 4 3 Calculate Jensen's alpha for the fund, as well as its information ratio. (Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places.) %
Considering the following trading and performance data for 3 different equality mutual funds from JHancock asset management company for the year 2020: Emerging market fund Principal Balance Small Cap Fund Income Fund Average asset (RM' Mill) Security 310 655 520 40.1 570 575 Expenses ratio 0.35% 0.71% 1.65% Pre-tax return, 3-year 10.2% 11.1% 15.2% average Tax-adjusted return, 9.5% 8.91% 13.4% 3-year average i)Calculate the portfolio turnover ratio for each fund ii) Which fund is most likely to be actively managed and which is most likely to be passively managed? iii) Calculate the tax cost ratio for each fund iv) Determine which fund is the most and least tax efficient in their operations? Explain v) Explain what expenses ratio is and which portfolio is considered expenses efficient.
Consider the following trading and performance data for four different equity mutual funds: Fund W Fund X Fund Y Fund Z Assets Under Management, $ 289.40 $ 653.70 $ 1,298.40 $ 5,567.30 Avg. for Past 12 Months (mil) Security Sales, Past 12 Months (mil) $ 37.20 $ 569.30 $ 1,453.80 $ 437.10 Expense Ratio 0.33% 0.71% 1.13% 0.21% Pretax Return, 3-Year Avg. 9.98% 10.65% 10.12% 9.83% Tax-Adjusted Return, 3-Year Avg. 9.43% 8.87% 9.34% 9.54% a. Calculate the portfolio turnover ratio for each fund. b. Which two funds are most likely to be actively managed and which two are most likely passive funds? Explain. c. Calculate the tax cost ratio for each fund. d. Which funds were the most and least tax efficient in the operations? Why?
Help me please
Calculate the net asset value (NAV) for a mutual fund with the following values: The NAV of the mutual fund is $ Data table per share. (Round to the nearest cent.) (Click on the following icon in order to copy its contents into a spreadsheet.) Market value of securities held in the portfolio = $4.3 billion Liabilities of the fund = $168 million = 318 million Shares outstanding X
d. DN Answer is (C) 2. You are an advisor reviewing fund managers performance over the last year. Your records indicate that government bonds have returned 5% over the period. You have also obtained the following information: Return Standard deviation Beta Market portfolio 0.148 0.52 Fund manager W 0.148 0.36 0.18 Fund manager X 0.160 0.34 0.16 Fund manager Y 0.114 0.34 2.60 Fund manager Z 0.158 0.56 1.80 Given the information above, which fund manager's performance shows it lies on the Capital Market Line? a. Fund manager W. b. Fund manager X. c. Fund manager Y. d. Fund manager Z.
In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. 1 2. 3 4 Fund -1.3 +25.0 +41.0 +12.0 +0.4 Market index -1.0 +17.0 +32.0 +11.3 -0.8 a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Did Ms. Sauros do better or worse than the market index on these measures? Mesozoic Fund Market Portfolio Return Return Average return Standard deviation а. Did Ms. Sauros do better or worse than the b. market index on these measures?
Consider the performance of a stock fund and a bond fund, based on the state of the economy. State of Economy Probability Stock Fund: Rate of Return Bond Fund: Rate of Return Boom 0.2500 0.4500 0.0500 Normal Growth 0.4500 0.1300 0.0700 Recession 0.2750 -0.1500 0.0750 Severe Recession 0.0250 -0.4000 -0.0500 Measurement Stock Fund Bond Fund Mean 11.98% 6.34% Variance 0.0541 0.0004 Standard Deviation 23.25% 2.06% Covariance (Stock and Bond Funds) -0.05% Correlation -9.68% Required: Using the information in the table above and the weights below, calculate the mean, variance, and standard deviation of a combined portfolio. Stock Fund 70% Bond Fund 30% (Use cells A5 to D21 from the given information to complete this question.) Portfolio Performance Mean Variance Standard…
Suppose you manage an equity fund with the following securities. Use the following data to calculate the information ratio of each stock. Input Data Vogt Industries Isher Corporation Hedrock, Incorporated Alpha 0.012 0.006 0.016 Beta 0.277 1.015 1.630 Standard Deviation 0.156 0.168 0.181 Residual Standard Deviation 0.117 0.048 0.113 Required: Using the information in the table above, please calculate the information ratio for each stock. (Use cells A5 to D8 from the given information to complete this question.) Vogt Industries Isher Corporation Hedrock, Incorporated Information Ratio

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