Estimating Returns. Hunter invested $8,200 in shares of a load mutual fund. The load of the fund is 7%. When Hunter purchased the shares, the NAV per share was $81. A year later, Hunter sold the shares at a NAV of $78 per share. What is Hunter's return from selling his shares in the mutual fund?

Estimating Returns. Hunter invested $8,200 in shares of a load mutual fund. The load of the fund is 7%. When Hunter purchased the shares, the NAV per share was $81. A year later, Hunter sold the shares at a NAV of $78 per share. What is Hunter's return from selling his shares in the mutual fund?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter2: Descriptive Statistics

Section: Chapter Questions

Problem 17P: Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual...

See similar textbooks

Related questions

Q: a. Prepare a schedule of monthly cash receipts for January, February, and March. Sales Credit sales…

A: The cash receipt schedule will be provided below in the excel spreadsheet as per the question.…

Q: called in 6 years for 113% of par value. What is your expected quoted annual rate of return if you…

A: Bond valuation entails determining the present value of a bond's future cash flows, which include…

Q: What is the maturity value of a 4-year term deposit of $9155.59 at 3.9% compounded monthly? How much…

A: The FV of an investment refers to the cumulative value of the cash flows of the investment at a…

Q: A competitive firm O Has the market power to compete effectively. O Confronts a downward-sloping…

A: A competitive firm functions within the confines of a perfectly competitive market, marked by…

Q: For how long will Markus have to make payments of $179 at the end of every year to repay a loan of…

A: Loan amount=$2130Annual payment=$179Interest rate=7%Compounding quarterly.

Q: cash notional H A 2 year European cash binary call option with barrier level K = 110 and…

A: To find the fair value of a European cash binary put option with the same maturity and barrier…

Q: andom Tools is currently an all-equity firm that has 7,200 shares of stock outstanding at a narket…

A: Share Repurchase:Share repurchase (also known as buy-back) refers to the decision of the firm to buy…

Q: An investor has decided to form a portfolio by putting 30% of his money into stock A and 70% into…

A: The expected return on a portfolio is a measure representing the average of all possible returns on…

Q: Question 51 If A bank has total assets of $3,000,000 and Liabilities of $2,500,000, the banks…

A: A leverage ratio is a financial metric that evaluates the proportion of a company's total debt in…

Q: Keeds Products has projected the following sales for the coming year 01 02 03 04 Sales $ 14,600…

A: A critical component of budgeting and business planning is generating a sales estimate. It assists…

Q: Swallow Industries has a beta of 1.60, a stock price of $17, and recently paid an annual dividend of…

A: The objective of the question is to calculate the cost of equity capital for Swallow Industries…

Q: Mojo Mining has a bond outstanding that sells for $2,174 and matures in 18 years. The bond pays…

A: The price of the bond (PV) is $2,174.The maturity is 18 years.The coupon rate is 7.14%.The face…

Q: Wildhorse Enterprises issued 10%, 9-year, $2,440,000 bonds that pay interest annually on April 1.…

A: The issue price of the bond is the sum of discounted cash flows of all the coupon payments and the…

Q: Yoga Center Inc. is considering a project that has the following cash flow and cost of capital (r)…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: Using the provided data, solve for future value. When entering (1+1/Y) into the formula, be sure to…

A: Future value refers to the value of all future cash flows at a future date. This is calculated by…

Q: Gorilla, Inc., has recently launched a ramen/sushi fusion dish that has received an overwhelmingly…

A: Current year Earnings per share$10.00Growth rate for the next 5 years20.00%growth rate after 5…

Q: TD Canada Trust issued a loan of $61,000 at 6.14% compounded semi-annually. The loan was repaid by…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: There is much speculation on how the current foreclosure market will evolve due to a variety of…

A: This essay delves into the potential transformations, exploring the intricate connections between…

Q: A project's IRR: A) All of these answers are correct. B is the average rate of return necessary to…

A: IRR is the rate that would result in net present value of future cash flows equal to exactly Zero.

Q: 9. Marco Incorporated had total current assets of $245,000, current liabilities of $150,000, common…

A: As the firm includes only current assets, total assets = $245,000

Q: percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company's…

A: Aftertax salvage value refers to the amount of tax to be deducted from the sale price after the life…

Q: You are planning to produce a new action figure called "Nia." However, you are very uncertain about…

A: Net present value is determined by deducting the initial investment from the current value of cash…

Q: t is now the beginning of the year. Assume that, starting at the end of the year, you will make…

A: Annual deposit = 822Rate = 15%Number of years = 4 years

Q: Oriole, Inc., has bonds outstanding that will mature in eight years. The bonds have a face value of…

A: Yield to Maturity (YTM) is a financial concept that reflects the total return an investor can…

Q: Elmco is financed with 30% debt, 10% preferred stock, and 60% equity. Its bonds' coupon rate is 5%…

A: In the given case, we have provided the weight of each capital. The bond's yield to maturity is…

Q: firm X buys equipment for $10,000 and leases the equipment to firm A for $600 a year for four years.…

A: Information provided:Present value= $10,000Future value= $11,000Annual lease payment = $600Time= 4…

Q: Assume that you purchased an 8%, 25-year, $1,000 par, semiannual payment bond priced at $1,016.50…

A: Yield to maturity refers to the rate of return which is required for computing the present value of…

Q: shares ($3 for each share) and sell two shares for $85. What is the time-weighted return? -9.54%…

A: The time-weighted return is an approach to assessing an investment portfolio's performance that…

Q: date of the note is December 31, 2018, and the principal and interest are due at maturity. F from…

A: Cash ProceedsCash proceeds refer to the money received from a financial transaction, such as the…

Q: The following table presents forecasted financial and other information for Scandinavian Furniture:…

A: We need to use perpetual growth formula below to calculate estimated terminal value of Scandinavin…

Q: You want your portfolio beta to be 1.16. Currently, your portfolio consists of $3,000 invested in…

A: Beta aids investors in evaluating the systematic risk of an investment.The portfolio beta is…

Q: Pelican Feeders Ltd. has an annual return of 15.27%. The risk-free asset returns 5.25%, and the S&P…

A: The objective of the question is to calculate the beta of the stock of Pelican Feeders Ltd. Beta is…

Q: 16) IGM Realty had stock prices of $33, $33, $38, $36, and $28 at the end of the last five quarters.…

A: Quarterly return = Here,P1 = Price at the end of the quarterP0 = Price at the beginning of the…

Q: You need what type of license to sell Health insurance? OP & C Security Life Health and Life

A: Health insurance is a type of insurance that helps one to cover medical expenses incurred due to…

Q: The returns on the common stock of Alpha Cycles, Inc. are quite cyclical. In a boom economy, the…

A: The expected return on the stock is calculated below

Q: C.You register a saving plan offering $200,000 at the end of 20 years. The saving plan promises 6%…

A: Required is to calculate annual deposit required.

Q: Because of the success of the new spicy sausages, Silvio's Sausage Factory has come up with another…

A: Initial Cost of Project is that amount which is incurred by the investor in year 0. It includes the…

Q: A business is planning to issue 10%, 6-year bonds with a par value of $525,000 on January 1 of the…

A: Semi-annual interest payment = 525,000 x 10% x6/12…

Q: A company's contribution margin income statement showed net operating income of $9,000 and fixed…

A: Net operating income = $9,000Fixed expenses = $20,000

Q: B. Projections for a new investment in lithium batteries are as follows: YEAR COST 0 1 2 3 4 5 6…

A: Payback period (PBP) refers to the period or duration within which the company is able to recover…

Q: A prenumbered document that tells the bank to pay the designated party a specific amount is a A.…

A: In financial transactions, various documents play crucial roles in facilitating payments, transfers,…

Q: MC algo 10-44 Risk Premium Over a certain period, large-company stocks had an average return of…

A: The risk premium refers to the expected market return of company stock, market return of portfolio…

Q: All but one of the following is a bank liability. O repurchase agreements O fed funds sold demand…

A: A bank liability refers to a financial obligation or debt that a bank owes to external parties. In…

Q: Westmore Products has projected the following quarterly sales. The accounts receivable at the…

A: Collections refers to an amount that is received by the business from selling the goods on credit…

Q: Ranger Corporation has decided to invest in renewable energy sources to meet part of its energy…

A: Net present value is capital budgeting technique used for making investment decisions.It is…

Q: When a firm issues stock, it has: O A. borrowed from the public. OB. purchased foreign currency. OC.…

A: When firm issues stock, it sells ownership of company in the form of equity shares to…

Q: General Electric (GE) issues $97.44 million in commercial paper with 113 days until maturity and a…

A: Commercial paper refers to the instruments that are issued by companies to raise debt capital for…

Q: Consider a 9-month forward contract on a zero-coupon bond with a face value of $1,000 that is…

Q: You have purchased a $1,000 Face Value, 9-month (270-day) Treasury-bill (T-bill) with a quoted…

A: Given:Face Value (FV) = $1,000Quoted Market Discount Yield (DMY) = 5.25%Number of Days to Maturity…

Q: JoAnn Manufacturing has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $ 55,…

A: Variables in the question: Q1 Q2 Q3 Q4Sales…

Question

Estimating Returns. Hunter invested $8,200 in shares of a load mutual fund. The load of the fund is 7%. When Hunter
purchased the shares, the NAV per share was $81. A year later, Hunter sold the shares at a NAV of $78 per share. What
is Hunter's return from selling his shares in the mutual fund?
Hunter's return from selling his shares in the mutual fund is -4.65 %. (Round to two decimal places and include a
negative sign where appropriate.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation of return

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Amy purchased 100 shares of open-end mutual fund at NAV of $42 per share. She received dividend payment of $2 and capital gain distribution of $4.30 per share during the year. At the end of the year the shares had a NAV of $40 per share. What's her rate of return on this investment? 5.43 % 7.19 % 9.18% 10.24%
K Compute the total and annual returns on the following investment. Six years after purchasing shares in a mutual fund for $7800, the shares are sold for $11,400. The the total return is %. (Do not round until the final answer. Then round to one decimal place as needed.) The annual return is %. (Do not round until the final answer. Then round to one decimal place as needed.)
About a year ago, Eric Robertson bought some shares in the Diamond Mountain Mutual Fund. He bought the fund at $25.50 a share, and it now trades at $26.30. Last year, the fund paid dividends of $0.72 a share and had capital gains distributions of $2.50 a share. Assume that the mutual fund distributed the dividends and capital gains at the end of the year. Using the approximate yield formula, what rate of return did Eric earn on his investment? Round the answer to two decimal places. % Repeat the calculation using a handheld financial calculator. Round the answer to two decimal places. % What rate of return would he have earned if the stock had risen to $30 a share? Round the answer to two decimal places. %
Tom had 300 shares of the XYZ Fund on January 1. The shares had a value of GHS23. During the year, he received GHS150 in dividends and GHS450 in capital gains distributions. He used the funds to purchase shares at an average price of GHS25 per share. By the end of the year, the shares were all up to GHS27. What is the percentage of his total return?
An investor purchases a mutual fund share for $100.2. The fund pays dividends of $2.2, distributes a capital gain of $1.1, and charges a fee of $3 when the fund is sold one year later for $95.3. What is the net rate of return from this investment? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
Last year, Melissa purchased a closed-end mutual fund that was trading at $33 and had a NAV of $30. She sold the fund today at the market price is $38 when the NAV is $39. The fund paid $1 in dividends over the past year. What is the her holding period return? 13.54% 18.18% 15.15% 12.82%
An investor buys shares in a mutual fund for $22. At the end of the year the fund distributes a dividend of $0.52, and after the distribution the net asset value of a share is $24.85. What is the investor's percentage return on the investment? Round your answer to two decimal places. 1
Give typing answer with explanation and conclusion Jessica had 600 shares of G Fund on January 1. The shares had a value of $22.35. During the year she received $1,080 in dividends and $1,620 in capital gains distributions. Jessica used the funds to purchase new shares at an average price of $18 per share. By the end of the year the shares declined to $15.83 per share. What is her percentage rate of return?
K Compute the total and annual returns on the following investment. Sixteen years after purchasing shares in a mutual fund for $6000, the shares are sold for $11,100. The the total return is%. (Do not round until the final answer. Then round to one decimal place as needed.)
over a four-year period, matt purchased shares in the barreau du quebec canadian equity fund. using the following information, answer the following questions. year investment amount price per share 2004 $3,000 $40 per share 2005 $3,000 $50 per share 2006 $3,000 $60 per share 2007 $3,000 $45 per share a at the end of four years, what is the total amount invested? what is the total number of mutual fund shares, and the aqverage cost of each mutual fund shares?
You purchased 500 shares of The New Century Fund at NAV of $23.56 last year. The fund distributed $4.35 in dividends at the end of the year and the current NAV is $21.78. What is the adjusted closing price of your purchase? Please show how to solve in excel
6. Suppose that at the start of the year, a no-load mutual fund has a net asset value of $27.15 per share. During the year, it pays its shareholders a capital gain and dividend distribution of $1.12 per share and finishes the year with an NAV of $30.34. a. What is the return to an investor who holds 257.876 shares of this fund in his (non- taxable) retirement account? b. What is the after-tax return for the same investor if these shares were held in an ordinary savings account? Assume that the investor is in the 30 percent tax bracket. c. If the investment company allowed the investor to automatically reinvest his cash distribution in additional fund shares, how many additional shares could the investor acquire? Assume that the distribution occurred at year end and that the proceeds from the distribution can be reinvested at the year-end NAV.