Reconsider the Fingroup Fund in the previous problem. If during the year the portfolio manager sells all of the holdings of stock D and replaces it with 200,000 shares of stock E at Php50 per share and 200,000 shares of stock F at Php25 per share, what is the portfolio turnover rate?
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Reconsider the Fingroup Fund in the previous problem. If during the year the
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- Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid-ask spreads amount to 0.5% of the value of the trade. If the portfolio turnover rate is 55%, by how much is the total return of the portfolio reduced by trading costs? (Round your answer to 2 decimal places.) Reduction in portfolio returns %You like to keep your investment risks at a 85-10-5 proportion (stocks-bonds-cash). After the first year, your $12,000 investment doubled in value to $24,000, with $21,000 in stock, $2,000 in bonds, and $1,000 in cash. How should you allocate your assets to maintain your original goals and rebalance your portfolio to retain the 85-10-5 proportion in investments? (Input all amounts as positive values.) Stocks Bonds Cash Allocation: Original goals Action to rebalance RebalanceA private equity fund is considering an acquisition. Using the data below, calculate the maximum amount of equity the fund would be willing to invest at entry, if the minimum IRR required by the fund is 20.0%. Enter your answer as a positive number, rounded to 1 decimal place, e.g. 1000.0 Exit year assumption LTM EBITDA Forecast EBITDA in exit year Exit multiple Debt/EBITDA at exit Answer: 5 years 400.0 750.0 7.0x 3.0x
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- Suppose you have recently accepted a new job and are setting up your retirement allocations within the firm's 401k plan. The plan options contain two risky mutual funds, A and B. You may assume that all fees are the same across the two funds. Fund A has an expected return of 6% and the standard deviation of returns is 12%. Fund B has an expected return of 7% and the standard deviation of returns is 15%. The correlation between returns on the two funds is 0. The plan also contains a Treasury fund which provides a risk-free return of 3%. A Suppose you can only invest in one of the two risky mutual funds (A or B), but can combine it with the Treasury fund in any proportions you wish. Which of the two mutual funds would you choose and why B Maintaining the restrictions on your investment choices from the last question, what is the best expected return you could achieve if you set up a portfolio with a standard deviation of returns equal to 10%? (Please express your answer in percentage…The Closed Fund is a closed-end investment company with a portfolio currently worth $190 million. It has liabilities of $8 million and 10 million shares outstanding. a. What is the NAV of the fund? (Round your answer to 2 decimal places.) NAV b. If the fund sells for $15 per share, what is its premium or discount as a percent of net asset value? (Input the amount as a positive value. Round your answer to 2 decimal places.) of %You invest funds in a stock market index fund whose share price is currently K100, and your time horizon is one year. You expect the cash dividend during the year to be K4. Suppose your best guess is that the share price will be K110. Calculate the following: expected dividend yield; holding period return (HPR); Capital gains yield and total holding period rate of return.