Solution-Find fund manager claim, The table below provides

Find fund manager claim

Assignment Help Finance Basics

Reference no: EM133069699

The table below provides past performance of Maverick Mutual Fund. Bob has invested $10,000 in the fund on 31^st Dec 2019 and he still holds that investments. As on 30^th June 2021, the fund manager claims that the fund has earned an annualised return of 8.26% over the past 6 quarters. (see the details in table).

	Maverick Mutual Fund		Jenny's Investment Decisions
Dates	Unit Price	Quarterly Return	Buy	Sell
31/12/2019	14.49
31/03/2020	9.95	-31.33%	100 Units
30/06/2020	10.45	5.03%
30/09/2020	9.42	-9.86%	500 Units
31/12/2020	12.85	36.41%
31/03/2021	12.91	0.47%
30/06/2021	14.37	11.31%		600 Units

Average Quarterly Return		2.00%
Effective Average Annual Return		8.26%

1. Do you agree with the fund manager's claim? Provide reasons to justify your answer. (Numerical calculations are not necessary).

2. Jenny also invested in Maverick Mutual Fund. She purchased 100 units of the fund on 31^st of March 2020 and again purchased another 500 units on 30^th September 2020. Finally, she sold all her Maverick Mutual Fund units on 30^th June 2021. Do you think Jenny earned higher rate of return than what Bob has earned from his investment in Maverick Mutual Fund? Why or Why not? (Numerical calculations are not necessary).

Reference no: EM133069699

Questions Cloud

Examine and evaluate the market segment : Examine and evaluate the market segment and target market for your SLE Project - Defend arguments using effective teamwork; value diverse perspectives

Identify factors that influence the industry : Select and waste management company e.g. (Rumpke Consolidated Companies Inc.; Recology Inc.; or Advance Disposal Services LLC) and thoroughly explain the follow

Amount of the expected daily savings : ABC corporation receives an average of 350 checks a day. The average amount per check is $769. The firm is considering a lockbox system which it anticipates wil

Calculate the rate of return on common shareholders equity : Accumulated other comprehensive income 80,000. Calculate the rate of return on common shareholders' equity and the rate of return on total assets for 2020

Find fund manager claim : The table below provides past performance of Maverick Mutual Fund. Bob has invested $10,000 in the fund on 31st Dec 2019 and he still holds that investments. As

Price change attributable to moving to maturity : Q1. A 4-year 6.8% coupon bond is selling to yield 7%. The bond pays interest annually. One year later interest rates decrease from 7% to 6.2%.

Critically appraise the addressable market opportunities : Critically appraise the addressable market opportunities by conducting a relevant market research for your project idea

Identify management styles : Identify 2 management styles, and discuss how each style will impact members of a team that work over time or teams working together to complete a assigned task

Calculate the incremental free cash flows : If the appropriate cost of capital for the expansion is 15 percent, calculate the incremental free cash flows associated with installing the TB-2000

User Account

All Pages

Find fund manager claim

Reference no: EM133069699

Reference no: EM133069699

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT