Saved Homework An investment fund has the following assets in its portfolio: $36 million in fixed-income...
An investment fund has the following assets in its portfolio: $36 million in fixed-income securities and $36 million in stocks at current market values. In the event of a liquidity crisis, it can sell its assets at a 93 percent discount if they are disposed of in two days. It will receive 95 percent of disposed of in four days. Two shareholders, A and B. own 4 percent and 6 percent of equity (shares) respectively. a. Market uncertainty has caused...
? ? save & Exit )(Submit Question 4 (of 4) ? > value: 25.00 points An investment fund has the following assets in its portfolio: $38 million in fixed-income securities and $38 million in stocks at current market values. In the event of a liquidity crisis, it can sell its assets at a 94 percent discount if they are disposed of in five days. It will receive 96 percent if disposed of in seven days Two shareholders, A and B,...
A DI has the following assets in its portfolio: $29 million in cash reserves with the Fed, $29 million in T-bills, and $36 million in mortgage loans. If it needs to dispose of its assets at short notice, it will receive only 99 percent of the fair market value of the T-bills and 91 percent of the fair market value of its mortgage loans. If the DI waits one month to liquidate these assets, it would receive the full fair...
A DI has the following assets in its portfolio: $23 million in cash reserves with the Fed, $23 million in T-bills, and $53 million in mortgage loans. If it needs to dispose of its assets at short notice, it will receive only 97 percent of the fair market value of the T-bills and 91 percent of the fair market value of its mortgage loans. If the DI waits one month to liquidate these assets, it would receive the full fair...
A DI has the following assets in its portfolio: $31 million in cash reserves with the Fed, $31 million in T-bills, and $35 million in mortgage loans. If it needs to dispose of its assets at short notice, it will receive only 99 percent of the fair market value of the T-bills and 91 percent of the fair market value of its mortgage loans. If the DI waits one month to liquidate these assets, it would receive the full fair...
Subject: PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 0.75. The risk-free rate is 4.00%, and the market risk premium is 5.0%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate...
PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 2.00. The risk-free rate is 7.50%, and the market risk premium is 6.5%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate calculations....
The Closed Fund is a closed-end investment company with a portfolio currently worth $180 million. It has liabilities of $6 million and 12 million shares outstanding. a. What is the NAV of the fund? 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.)
Portfolio required return Suppose you are the money manager of a $4.44 million investment fund. The fund consists of four stocks with the following investments and betas: Beta 1.50 0.50 1.25 0.75 Stock Investment $220,000 700,000 1,220,000 2,300,000 If the market's required rate of return is 13% and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places
PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $5.06 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta $ 260,000 1.50 500,000 (0.50) 1,500,000 1.25 2,800,000 0.75 If the market's required rate of return is 10% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. hoat Work