Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

The composition of the fingroup fund portfolio is as follows

22/10/2021 Client: muhammad11 Deadline: 2 Day

Finance Ch 3 And Ch 4 Exercises

Chapter 3
12. Suppose you short-sell 100 shares of IBM, now selling at $200 per share. (LO 3-4)
a. What is your maximum possible loss?
b. What happens to the maximum loss if you simultaneously place a stop-buy order at $210?

14. DRK, Inc., has just sold 100,000 shares in an initial public offering. The underwriter’s
explicit fees were $60,000. The offering price for the shares was $40, but immediately
upon issue, the share price jumped to $44.

a. What is your best guess as to the total cost to DRK of the equity issue?
b. Is the entire cost of the underwriting a source of profit to the underwriters?

15. Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at
$40 per share. She borrows $4,000 from her broker to help pay for the purchase. The
interest rate on the loan is 8%. (LO 3-4)

a. What is the margin in Dée’s account when she first purchases the stock?
b. If the share price falls to $30 per share by the end of the year, what is the remaining
margin in her account? If the maintenance margin requirement is 30%, will she
receive a margin call?

16. Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams
from the previous question. The initial margin requirement was 50%. (The margin
a. What is the remaining margin in the account?
b. If the maintenance margin requirement is 30%, will Old Economy receive a margin call?
c. What is the rate of return on the investment?

17. Consider the following limit order book for a share of stock. The last trade in the stock
occurred at a price of $50. (LO 3-3)
Limit Buy Orders Limit Sell Orders
Price Shares Price Shares
$49.75 500 $50.25 100
49.50 800 51.50 100
49.25 500 54.75 300
49.00 200 58.25 100
48.50 600

a. If a market buy order for 100 shares comes in, at what price will it be filled?
b. At what price would the next market buy order be filled?
c. If you were a security,would you want to increase or decrease your inventory of
this stock?

Chapter 4
11. An open-end fund has a net asset value of $10.70 per share. It is sold with a front-end
load of 6%. What is the offering price?

13. The composition of the Fingroup Fund portfolio is as follows:
Stock Shares Price
A 200,000 $35
B 300,000 40
C 400,000 20
D 600,000 25
The fund has not borrowed any funds, but its accrued management fee with the portfolio
manager currently totals $30,000. There are 4 million shares outstanding. What is
the net asset value of the fund?

15. The Closed Fund is a closed-end investment company with a portfolio currently worth
$200 million. It has liabilities of $3 million and 5 million shares outstanding. (LO 4-3)

a. What is the NAV of the fund?
b. If the fund sells for $36 per share, what is its premium or discount as a percent of NAV?

16. Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV
equaled $12.10. The fund paid year-end distributions of income and capital gains of
$1.50. What was the rate of return to an investor in the fund?

22. The New Fund had average daily assets of $2.2 billion in the past year. The fund sold
$400 million and purchased $500 million worth of stock during the year. What was its
turnover ratio?

24. You purchased 1,000 shares of the New Fund at a price of $20 per share at the beginning
of the year. You paid a front-end load of 4%. The securities in which the fund
invests increase in value by 12% during the year. The fund’s expense ratio is 1.2%. What
is your rate of return on the fund if you sell your shares at the end of the year?

27. Suppose that every time a fund manager trades stock, transaction costs such as commissions
and bid–ask spreads amount to .4% of the value of the trade. If the portfolio turnover
rate is 50%, by how much is the total return of the portfolio reduced by trading
costs?

28. You expect a tax-free municipal bond portfolio to provide a rate of return of 4%. Management
fees of the fund are .6%. What fraction of portfolio income is given up to fees?
If the management fees for an equity fund also are .6%, but you expect a portfolio return
of 12%, what fraction of portfolio income is given up to fees? Why might management
fees be a bigger factor in your investment decision for bond funds than for stock funds?
Can your conclusion help explain why unmanaged unit investment trusts tend to focus
on the fixed-income market?

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Premium Solutions
Top Class Results
Calculation Guru
Supreme Essay Writer
Top Quality Assignments
Maths Master
Writer Writer Name Offer Chat
Premium Solutions

ONLINE

Premium Solutions

I will be delighted to work on your project. As an experienced writer, I can provide you top quality, well researched, concise and error-free work within your provided deadline at very reasonable prices.

$39 Chat With Writer
Top Class Results

ONLINE

Top Class Results

I will be delighted to work on your project. As an experienced writer, I can provide you top quality, well researched, concise and error-free work within your provided deadline at very reasonable prices.

$40 Chat With Writer
Calculation Guru

ONLINE

Calculation Guru

I have done dissertations, thesis, reports related to these topics, and I cover all the CHAPTERS accordingly and provide proper updates on the project.

$30 Chat With Writer
Supreme Essay Writer

ONLINE

Supreme Essay Writer

As an experienced writer, I have extensive experience in business writing, report writing, business profile writing, writing business reports and business plans for my clients.

$34 Chat With Writer
Top Quality Assignments

ONLINE

Top Quality Assignments

I will be delighted to work on your project. As an experienced writer, I can provide you top quality, well researched, concise and error-free work within your provided deadline at very reasonable prices.

$18 Chat With Writer
Maths Master

ONLINE

Maths Master

I have assisted scholars, business persons, startups, entrepreneurs, marketers, managers etc in their, pitches, presentations, market research, business plans etc.

$40 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

West harbour rugby union club - Zygo mx software manual - Water curtain sprinkler requirements - Help with post - Texas assessment practice the poor and their betters answers - Banking concept vs problem posing - Draw the shear and moment diagrams for the overhanging beam - Animal farm essay plan - The odyssey book 13 summary - Good vs evil essay - Psy 110 university of phoenix - How to end diary entry - Sue and sue counseling the culturally diverse 6th edition - Similarities of academic text and non academic text - Mgmt Research Paper ,Economics Reflection, Discussion and Assignment - Lienard wiechert potential derivation - Benefits of phones in school - Which of the following statements is true regarding hipaa security - All my sons thesis statement - Edi reference guide - Week6: discussion question - Penn foster financial accounting graded project - Lump sum building contract - Explain who and what demand and supply represent - Week 7 final research paper 832 - Is a cylinder a platonic solid - Wanneroo business association events - Characters in montana 1948 - (ser) las ocho cuando francisca y elena se (levantar) para preparar todo. - Cause and effect - 6 point lesson plan template - Carvin v arkansas power and light - Modern garden architecture ppt - Intermediate accounting chapter 23 statement of cash flows solutions - 1 samuel 2 12 17 - Statement Analysis Worksheet - Fsr meaning in banking - Merlin home transmitter wireless setup - Industrial Hygiene - Week 1 Assignments - Explaining dissociation to a child - Specific security mechanism - Deliverable 2 - Kingston-Bryce Business Case - Focused cough assessment shadow health - Acs chemical biology template - Is advertising a period or product cost - Is freedom writers a true story - Kinetic sculpture art definition - August osage county screenplay - Animal cell 3d model - Ho chi minh trail map - Bible dictionary project old testament - Business law essay questions and answers - IDM W 7 A - Biographical characteristics and how are they relevant to ob - Help 1 - Discussion math 3 - Communication - Lg hi macs white granite - The coming of enkidu - Why are avocados expensive in australia - Management style - Find the number of full 8 hour shifts - Public Health outbreak - Introduction to assembly language ppt - Vw swot analysis - What PESTEL factors contribute to KFC's positioning? - Sniper solitude tree stand reviews - Research Paper - Lesson 6.4 practice a geometry answers pages 347 355 - A2 dimensions in mm - Nno accounting - Sales discounts with terms 2 10 n 30 mean - Job safety analysis template worksafe - Biology of Mind - Practice: “Life” Standards Alignment - Assignment: Regulation for Nursing Practice Staff Development Meeting - What is the exact value of sin - Given that z is a standard normal variable, the value z for which p(z < z) = 0.2580 is - Amp custom super login - SOCW 6361 wk 11 Discussion 1: Policies and the Influence of Values - A sentimental journey through france and italy sparknotes - Exponent in vba - Alibaba organizational design - Find the probability that in 200 tosses - Parting line in plastic design - The field of finance primarily studies - Discussion Activity - Homework computer - Lab 2 separation of a mixture chemistry 1 answers - The importance of user technology security education within organizations - Ethical guidelines for statistical practice - Gordon's function - How to find tax and tip - Ask physics questions and get answers for free - CAPSIM Rounds - Examples of creating a caring community of learners - Invitational speech outline - Jin and yin fox spirits steam market - Philippine inventory of chemicals and chemical substances list