Excess return each year should the actively managed

Reference no: EM139375

Q. Suppose typical index fund or ETF charges management fee of= 0.10% each year also has low turnover resulting in trading costs of another= 0.05% each year. Suppose that the actively managed stock mutual fund charges the management fee of= 1.0% also has much higher turnover resulting in trading costs of the extra 0.5% each year. Actively managed fund has the possibility to out each form market while index fund will deliver return of market (less management also trading costs). Find out excess return each year should the actively managed fund earn to overcome higher fees?

Reference no: EM139375

Questions Cloud

Evaluate abc cost of equity capital by using the market risk : Evaluate ABC cost of equity capital by using the market risk premium of 3.5%. What is firm's WACC under each of 2 suppositions about market risk premium.

Conceptually most right capital budgeting method : What is your suggestion on this project according to conceptually most right capital budgeting method.

Compute current value of futures position : Compute current value of futures position based on the rate calculated above plus the 2 points.

Shares of stock should be sold for company : How many shares of stock should be sold for company to net= $20 million after costs also expenses

Excess return each year should the actively managed : Find out excess return each year should the actively managed fund earn to overcome higher fees.

Interest accrues during nine months : How much interest accrues during nine months in which you have short position.

A life insurance policy with the taxable value : A life insurance policy with the taxable value of= $450 or a non-taxable increase in health insurance coverage valued at= $340.

Pay some university expenses : Portfolio's beta is 1.5. Thomas is allowing for selling particular stock to aid pay some university expenses.

Violet isaacsongave jeanne collection of coin : One month before she died on April 14, 2002, Violet Isaacson (Jeanne's mother) gave Jeanne collection of coin.

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages